January 29, 2006
Checklist for outsourcing business processes
Companies that outsource business to vendors need to be cautious in their selection of the service provider and take effective steps to remove all ambiguities in the relationship through proper documentation. Go4outsourcing.com, an online freelance outsourcing marketplace to find freelancers/outsourcing companies, has released important guidelines for outsourcing companies in engaging in a third-party service agreement.
The first step is to locate the suitable service provider. One of the avenues through which service providers can be located is an online outsourcing marketplace. The specific business requirement can be posted online, and a service provider with the right set of skills can then respond through a proposal or bid. Another method of locating a vendor is through the many search engines and directories. In making the final selection, it is advisable to evaluate the vendor's past record and service provided to clients.
After the service provider is finalized, information should be filtered, so that confidential information is not divulged to the vendor. An agreement should be signed to clarify that the service provider should maintain the confidentiality of the information made available. It is critical that there is no ambiguity in the requirement from the service provider, and all such clauses should be documented and agreed upon. The various milestones and deliverables of the project must be defined and set, and the payment should be made after the agreed deliverable.
During the project phase, regular feedback must be a part of the relationship, and team members from both parties should be on a one-to-one relationship. Any change in payment, deliverables, and project scope must be documented to remove ambiguity. All interactions must be recorded as they can be used in the event of a dispute.
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