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Top three questions for a potential outsourcer

What are the top three questions a company should ask a potential outsourcer?

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  1. Does the outsourcer have credibility as evidenced by deep and broad successful experience in their market?

    Companies should seek outsourcers that have been successful with industry peers. They should insist on speaking with reference customers and meeting key personnel as part of the due diligence process.

  2. How effectively can the service provider share real-time visibility into service performance?

    Does the service provider have structured processes and tools for monitoring ongoing service performance? Ideally, your outsourcing partner will provide you with real-time visibility into service performance through a service dashboard or alerts. Such visibility strengthens an outsourcing relationship as it eliminates ambiguity about service compliance.

  3. Does the outsourcing provider have the infrastructure to manage your service commitments? With growing demand for its services, some outsourcers are resource-constrained. Before working with a service provider, check to make sure they have technical infrastructure capable of supporting your requirements. This could be reflected in their ability to provide real-time visibility and reporting, so that you can know in an instant the status of service delivery. Likewise, your provider should be well capitalized and have adequate facilities to handle your business requirements.

This was first published in March 2006

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