Today, the business world is offshoring to outsourcing companies like never before, no matter how big or small the business.Statistics show that 52% of small businesses plan to outsource for increased business efficiency and skills. However, only 37% do so. Little did some businesses know, those who capitalize on outsourcing solutions are more capable of scaling up operations, access talent that can be difficult to hire locally, expand the capabilities of their business.It’s understandable, however, that some are anxious because of the time difference. At the same time, some don’t know how to choose the best outsourcing company that fits their business. So, we’re here to help with that.
10 Factors to Think about When Selecting the Right Outsourcing Partner
While many companies are focused on where to outsource and what companies would best serve their needs, it’s vital to consider some factors when selecting an outsourcing company.Here are some of the top factors that go far beyond financial concerns when selecting the right outsourcing partner:
1. Minimal Supervision
One of the main goals of hiring an outsourcing company is to reduce the work you already have on-site while you focus on other business matters. So, you have to ensure they are capable of producing quality work with minimal revisions.It’s easy to see how an outsourcing company performs because they’re most likely to have a website. There, you can browse through their About Us page, and previous work or testimonials.
2. Trustworthiness
An essential part of a partnership with a business entity is trust — especially when you’re limited by the screen of your computer or phone. Hence, don’t hesitate to ask about everything you want to know about their company to see if they’re a good fit.Most of our first-time-business-owner clients worry about trusting outsourced work and for an understandable reason. This is why we always take the extra mile in proving them that we’re a trustworthy, experienced outsourcing company through detailed case studies.Check out our case studies
3. Service Level Agreement
An essential part of a partnership with a business entity is trust — especially when you’re limited by the screen of your computer or phone. Hence, don’t hesitate to ask about everything you want to know about their company to see if they’re a good fit.Most of our first-time-business-owner clients worry about trusting outsourced work and for an understandable reason. This is why we always take the extra mile in proving them that we’re a trustworthy, experienced outsourcing company through detailed case studies.
4. Attrition Rate
The attrition rate determines the strength or weakness of a country to satisfy outsourced work based on workforce and skill. A high attrition rate can mean a country has a saturated workforce for a single skill (commonly IT) or problems with pay and government support.In the Philippines, the attrition rate is low because Filipinos are capable of handling various jobs. An online business, for example, can outsource digital marketing, graphic design, accounting, customer service, and human resource management.Another thing that affects attrition is company culture.Poor company culture leads to more cost in the long run, as employees are more likely to leave the company. Losses in having to train replacements, and then you lose out on their productivity during the ramp-up period as it usually takes a few weeks before new employees reach full productivity levels.Therefore, it’s better overall to retain employees, and that’s usually done through good company culture, skills training, fair compensation, and more.
5. Management Team
While you have the choice to still be in charge of managing your offshore team, you can outsource this responsibility as well. Don’t hesitate to ask details about who will be responsible for leading your outsourced team.Aside from being an outsourcing company, KDCI also specializes in offshore staffing. We can handle the talent search, shortlisting, and other HR work, while you have the final say at who gets hired for what job role. With 20 years of experience, you can trust our standards in looking for great people for your business.
6. Time Zones
While you may be able to cut costs through an outsourcing company easily, the best partnerships are the ones that give you the most value for your money. One of the critical factors you have to consider to ensure profit is taking advantage of time zones.It’s a good idea to choose an outsourcing company that has a location in a time zone that will match well with your company, or someone who will adjust to your time zone. Doing so will help your business to have more operational flexibility. It will allow you to service a broader client base.Outsourcing companies like KDCI always accommodate clients in terms of time zones. We go out of our way to communicate with you in real-time. Plus, you also have the flexibility to have your teamwork in your time zone since we operate 24/7.
7. Government Mandates and Legalities
There are some areas of the world where the process of outsourcing can be more challenging. Logically, you would want an outsourcing partner in a country where the government provides adequate support for the industry.The Philippines, for instance, provides incentives and benefits to companies that outsource to the country as well as to employees. However, there is some nitty-gritty like taxes, lease, payroll, and more. Hiring through an outsourcing company lets you work through all legalities seamlessly.
8. Access to Talent
An outsourcing company’s access to talent determines how big they are as a business. It’s better to put your trust in a more prominent, experienced outsourcing company so you can rest assured you’re putting your money in the right place.Outsourcing to the Philippines is a great way to have access to the right talent. In 2019, based on a report by the United Nations, the Philippines has a 97.95% literacy rate, having the highest in Southeast Asian countries.This isn’t surprising as they churn out around 680,000 graduates a year, ready to be hired for just about anything. Moreover, you can be sure that members of your offshore team are trained and certified to produce the products or services you need. You can also be sure that these products or services comply with your standards.
9. Tech and Infrastructure
Because you’re going to rely on a lot of online communication and technology to keep your businesses connected, it’s essential that you find a partner that has excellent access to technology. Ensure that there is a reliable system in place for transferring files and communicating.In terms of infrastructure, an outsourcing company should ideally have an office for offshore operations. This is a good sign that they are professional, and your offshore team will be in a healthy working environment.Quick note: before signing with an outsourcing company, make sure they have contingency plans or business continuity plans. This ensures that they will be prepared in case of power outages, internet issues, data breach, and other scenarios that can interfere with work.Contact us
10. Language and Communication
Speaking of communication, language is also essential in any offshore team. Make sure that your outsourcing partner has people that you can talk to and actually communicate with.Effective communication plays a big part in maintaining efficiency and ensures that the time and money you spent are appropriately utilized. Luckily, the Philippines is considered to be one of the best English speaking countries in Asia.
KDCI: A Trustworthy Outsourcing Partner
We understand that outsourcing or building an offshore team can be a huge leap for you and your company. With our experience in the industry, you can guarantee that we’ll give you the best value for your money. We’re more than happy to answer any questions or inquiries you may have, so don’t hesitate to contact us!Published: May 28, 2015Updated: March 17, 2020
