Outsourcing success: 4 essential tips

by angela.booth on May 26, 2009

Outsourcing makes sense for many reasons, but it’s filled with pitfalls. It can be extremely difficult to get reliable and competent vendors.

Here are four essential outsourcing tips:

1. Write your project description clearly

Take your time creating your project description. Make it clear what you want. (Check others’ descriptions for similar projects to get ideas.) Be especially clear on the amount of experience the project rquires, and the deadline for the project — but don’t be unrealistic.

For example, regarding experience. You may want a highly qualified vendor, and you can get one, provided you’re willing to pay for it. Regarding deadlines: vendors won’t drop everything to work solely on your project — they have other deadlines — so keep your deadlines realistic.

2. Check vendors feedback, profile and portfolio (yes, READ the feedback)

When a vendor has little feedback, it’s not a reliable guide. Some buyers won’t leave negative feedback, they’re too embarrassed that they were gullible.

Check the vendors’ profile, and portfolio. Look for projects similar to the project you’re posting.

On a long, expensive project, ask for vendor references, and contact those references.

3. Create a shortlist, and communicate with them

Hiring a vendor is like dating. Everyone is on their best behavior initially. Therefore, if a vendor is slow to respond, or you get a sense that the vendor may not be as qualified as he/ she claims, beware.

If you expect a vendor to do a trial portion of a long project: PAY THEM for it. Don’t expect to get freebies. No competent vendor will do a freebie, they’re too busy.

4. Pay at milestones

On long projects, set milestones, and release payment at those milestones.

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