The Outsourcing Dilemma - The Search for Competitiveness.pdf

the process of choosing a service provider 81
How do you find the right outsourcing
service provider
Use an ideal provider profile
First of all, it is essential for the client to draw up a profile of the ideal provider before
contacting anyone. What type and range of specialist skills are necessary and in what
quantity If the provider experienced any shortfall in numbers and quality of specialists
once the project was underway, would you be willing for sub-contractors to be used Do
you feel it is essential for the service provider of your non-core function to have worked
for clients who are direct competitors in your core functions In other words, is it important
that they understand your business What parameters do you wish to place on the
size of potential service providers – does this refer to the total number of people they will
put on your account or to the total number of staff they employ
Invariably when you start to meet with potential service providers some of the parameters
set will probably need to be adjusted, but it is still beneficial to do an ideal profiling
exercise because it saves time and narrows the search. European public sector organizations
are frequently forced to find outsourcing service providers by placing
announcements inviting tenders in the European Journal. Even then it makes good sense
to have completed this type of exercise before the potential providers respond.
For most private sector organizations it is a question of finding out who the most suitable
providers are and then approaching one or more. These days it is easy to find
relevant service providers. A few minutes on the internet should uncover more than you
would ever want to talk to. Before you contact a service provider it is obviously desirable
to get as much information about the company as you possibly can to compare with your
ideal profile. This will take a little more time but the information necessary to narrow the
search is likely to be found on the internet. Quite often the service providers’ websites
will contain snippets from articles they have featured in, statements regarding the areas
they specialize in and, increasingly, case histories.
It is therefore possible to isolate a significant number of service providers in this way
and many will appear to be a reasonable match with the ideal profile set. This is
inevitable as most providers claim expertise over a wide range of activities.
Speak to existing clients
Other sections of this book deal with pros and cons of dealing with just one or multiples
of providers. But, however many providers you contact, it is a good idea to ask
each of them for permission to speak to at least one of their existing customers about
the service they are currently receiving. Service providers don’t enjoy being forced to