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A comprehensive guide to selecting the right offshoring partner

By
Wyatt Bacon
COO, Base Global
Published:
September 29, 2024

Introduction to offshoring

Offshoring is a business strategy that can offer many benefits, such as strategic workforce placement, global skill access, and productivity acceleration. Offshoring also comes with many challenges and risks, such as quality control, communication barriers, cultural differences, and legal complexities.Choosing an offshoring partner is not a simple or easy task. It requires careful research and evaluation of various factors and criteria.

This article outlines key factors and criteria to consider when evaluating and choosing an offshoring partner.

Key Factors and Criteria to Consider

Experience and reputation

The first factor to consider when evaluating an offshoring vendor is their experience and reputation in your profession or industry.

  • What are their clients' testimonials and feedback?
  • How do they rank among their competitors?
Skills and expertise

The second factor to consider is their skills and expertise in the specific domain.

  • Do they have the required business knowledge and domain expertise?
  • Do they have the right vision, leadership team and support systems, tools and processes to help you succeed?
Communication and collaboration

The third factor to consider is their communication and collaboration skills.

  • How do they communicate with their clients and team?
  • What are their communication channels and methods?
  • How do they handle feedback and suggestions?
  • How do they resolve conflicts and issues?
Investment and value

The fourth factor to consider is the investment and value proposition.

  • What are the service fees?
  • What are their payment terms and conditions?
  • What are the hidden or additional costs that they might charge?
  • What are the benefits and value that they deliver in return?

Here are some tips for your due diligence and selection process:‍

1. Ask for References from Other Clients.

One of the best ways to find a reliable and trustworthy offshoring partner is to ask for references from other clients who have worked with them. This can help you get a firsthand insight into the suppliers' performance, reputation, and customer service. We recommend you ask for additional references from your network, profession associations, or online platforms. Some of the questions you can ask the references are:

  • How long have you been working with the supplier?
  • What are the main benefits and challenges of working with them?
  • How do they handle communication, feedback, and quality control?
  • How do they deal with issues or disputes?
  • How flexible and responsive are they to your changing needs?
  • How do they protect your data and intellectual property?
  • How do they measure and report on their results?

2. Check the Suppliers Reviews and Ratings.

Assess the supplier's credibility and professionalism by checking their reviews and ratings on online platforms such as Google, Glassdoor and Indeed. These platforms allow current and former employees and clients to share their opinions and experiences about working for and partnering with the supplier. You can learn a lot about the supplier's culture, values, management, and work environment by reading the reviews. Some of the aspects to pay attention to are:

  • The overall rating and satisfaction level of the employees
  • The positive and negative feedback and comments
  • The frequency and recency of the reviews
  • The trends and patterns of the reviews over time
  • The response and engagement of the vendor to the reviews

3. Check the Supplier's Compliance with Local Regulations.

‍Another essential factor to consider when choosing an offshoring partner is their compliance with local regulations and laws. You want to make sure that the supplier is operating legally and ethically, and that they are not exposing you to any legal risks or liabilities.

You can check the supplier's compliance by looking at their certifications, licenses, permits, and registrations with the relevant authorities and agencies. Some of the areas to check are:

  • The supplier's compliance with local tax laws and payment of taxes/fees
  • The supplier's compliance with local labor laws and payment of wages/benefits to their employees
  • The supplier's compliance with local health and safety laws and providing safe & healthy working environment to their employees
  • The supplier's compliance with local environmental laws and minimising environmental impact
  • The supplier's compliance with local data & privacy protection in safeguarding of your data and information

You should avoid supplier's that have any violations or penalties for non-compliance with local regulations and laws, as this may damage your reputation and expose you to legal actions and sanctions.

4. Check the Supplier's Employee Engagement and Welfare.

‍The final factor to consider when choosing an offshoring partner is their employee engagement and welfare. You want to make sure that the supplier is treating their employees well and that they are providing them with the necessary support and resources to perform their tasks.

You can check the supplier's employee engagement and welfare by looking at their policies, programs, and practices that aim to enhance their employees' well-being and satisfaction. Some of the areas to look for are:

  • The supplier's employee recognition and reward schemes, and their appreciation and acknowledgement of their employees' achievements and contributions
  • The supplier's employee feedback and communication channels, and their solicitation and incorporation of their employees' opinions and suggestions
  • The supplier's employee empowerment and autonomy, and their delegation and trust of their employees' decisions and actions
  • The supplier's employee diversity and inclusion, and their respect and acceptance of their employees' differences and identities

Conclusion

Choosing an offshoring partner is a strategic and important decision that can have a significant impact on your business outcomes and success. Therefore, you should not rush into it, but rather, take your time and do your due diligence.

By following the tips and advice in this article, you can find the best offshoring partner that meets your business needs and expectations, and that can help you achieve your goals and objectives.

To find out more about BASE Global Solutions, contact Stephen Watts and Wyatt Bacon directly to have a transparent conversation and learn how you can partner with us to achieve your required outcomes.

Our future success is linked to your future success and partnering with you is why we are here - Your Success, Is Our Purpose!
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