Outsourcing Checklist

1. Before you sign a contract with your outsourcing vendor, make sure that your organization owns the source code for the final product.

2. Check with your outsourcing vendor if he will provide you with the flexibility to renegotiate the terms and pricing of the contract once it is signed.

3. Ensure that your outsourcing provider signs non-disclosure agreements, so that you can be assured of the privacy and confidentiality of your data.

4. Find out if changes and upgrades are a part of the deal or if you will have to pay more when upgrades are done. Ensure that you have a clear understanding of the scope of the deal before you outsource.

5. Before the outsourcing process begins, decide on how you will measure the success of the project, so that at the end of the project, you can clearly measure if your outsourcing process have been successful.

6. Don’t underestimate the difficult of managing an outsourcing relationship, especially if you are new to outsourcing. Although outsourcing will take the burden of a back-office operation that you don’t want to handle, you may face issues in the outsourcing process.

7. At the onset of the outsourcing process, decide on the person who will be in-charge of the project that is outsourced. Find the right person for the job. The person who managed the now outsourced work in-house may not be the right person to manage the outsourcing process.

8. Tell your outsourcing vendor to contact the person in charge of the outsourced project for all the issues that he might face, whether it is large or small. Hiring a person who has prior experience in handling outsourcing vendors, might be an option to consider.

9. Give your company and your outsourcing vendor ample amount of time to get the outsourcing relationship started.

10. Do not get carried away with the verbal claims of your outsourcing partner.  Ask your outsourcing partner for proof of their capabilities and expertise. You can also ask them for references with whom you can personally check and ask about the work of your outsourcing vendor.

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One thought on “Outsourcing Checklist

  1. 1. Whether the company passed ISO audits in last 3 consecutive
    years successfully.
    2. Whether the company to which you are outsourcing is acquired
    by another company in last 2 years. (Risk is more as there
    will be instability for a few years after acquisition)

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