How to choose outsourcing partner?
When you are looking for the right outsourcing partner, you must look for certain characteristics in your outsourcing partner. Those characteristics are
- Domain experience and track record
- Local presence and ability to provide instant support
- Competitive rates and ability to deliver quality service
- Flexibility, scalability and adaptability
Successful execution of similar projects in the accounting outsourcing domain is a good indicator of the ability of the outsourcing supplier. It is better to choose a domain specialist outsourcing supplier than a general outsourcing supplier. Domain experts will typically have the knowhow, latest processes and methods. So if you want to outsource accounting then choose a specialist accounting outsourcing provider.
Communication and transition of work is very important especially in the early stages of the outsourcing relationship. This will be greatly aided if the outsourcing supplier has a local presence in your country. This provides an opportunity to quickly find if the supplier is the right match and it can save a lot of your due diligence efforts.
Price and quality of service
Quality comes at a price. But a balance can be struck. Watch out for the guaranteed quality of service at a competitive price. The service level agreement should include the expected quality and agreed in advance with your offshore partner.
Flexible partnership agreements
Ability of the outsourcing supplier to scale up the operations and do it quickly is crucial. Flexibility to adapt to your exact requirements is very important in an outsourcing partnership.
Apart from the above, history, track record, strength of senior management, stability of the outsourcing provider is a few other factors to consider.
Why think twice when selecting outsourcing partner?
Outsourcing is like a marriage. You don't get into a marriage unless you really know the person whom you are getting married to. Likewise you cannot choose an outsourcing partner without fully knowing about them, their strengths, weaknesses, cultural fit and a lot more.
In marriage you share important information, form trust while sharing good and bad times. A good level of transparency must exist for the marriage to be successful and long lasting.
Just as in marriage, even in outsourcing, you are giving control of an important function of your business. You want it to be in safe hands. You want your outsourcing partner to advice and guide you through good and bad times. Failing this ends up in messy divorces. You don't want that. You want to "happily live ever after". That is why you must think twice when selecting your accounting outsourcing partner.