Factors to Consider While Selecting Outsourcing Service Providers

Outsourcing has become an indispensable part of small business operations for a majority of companies.Factors to Consider While Selecting Outsourcing Service Providers The increasing benefits of outsourcing have multiplied the number of outsourcing service providers. Hence, instead of concentrating on “why” or “what” to outsource, companies around the world are struggling more to find an answer to the question “whom to outsource to”. After all, choosing the right outsourcing service provider is among the most daunting tasks.

However, considering the following key factors while selecting an outsourcing partner for your business can make it easier for you to decide upon the company you choose to outsource your project to:

Resource Quality

This is the first thing you should check while choosing from a list of outsourcing companies. It is the skill set of the resources that will directly affect your project delivery. Evaluate carefully how qualified and capable the workforce is and whether the professionals have previous experience of working in similar projects. If required, ask for case studies; going through a company’s portfolio will give you a fair idea of their work experience.


Before outsourcing your business to any of the available service providers, you must check the infrastructure of the company. Check whether the outsourcing company shortlisted by you has got the required infrastructural safeguards and back-ups that can prevent business disruptions during server downtime. Moreover, try to probe into issues such as availability of sufficient resource that is critical for successful delivery of services.

IP and Confidentiality

In case, you are choosing an outsourcing company that is based out of your country, it is essential to check whether the service provider understands your needs of IP and confidentiality protection. Very importantly, you need to also check whether the country has enough enforcement of trademark, patent and copyright laws.


The outsourcing service provider you choose should have an understanding of what corporate communication means. Apart from understanding your business requirements, the company must be able to communicate well with your in-house team. Clear communication, after all, is the key to successful co-ordination.

Outsourcing Cost

The increasing number of outsourcing service providers has made the cost of outsourcing very competitive. Thus, it is good to research well on the market price before diving deep into a contract with the outsourcing company. Doing so will help you check whether the price quoted by your chosen outsourcing partner is justified. In fact, you can even look for companies offering similar services at a lower rate; however, ensure that the quality of the work is not compromised.

Besides the aforementioned points, there are a number of factors such as industry knowledge, project planning and management skills, quality assurance practices and so on that can help you choose a competent outsourcing service provider for your business. Several factors vary depending on whether the outsourcing company chosen by you is based within or outside your country such as time zone, geo-political risk and etc. Inattention to any of these factors is more likely to make you select the wrong outsourcing service provider. Thus, instead of taking any spontaneous decision, take enough time to consider every possible factor before you choose among the outsourcing companies.

About Vivek Shah

An IT industry specialist, Vivek has over 11 years of experience with strong understanding of IT services and delivery. Having worked with the largest IT outsourcing and consulting companies, Accenture, Genpact and Computer Sciences Corporation and Capgemini, he has experience across various functions. Contact Vivek Shah at social@itxchg.com.