When to outsource

• Your business development requires investments into technology that is too expensive or absolutely unfamiliar to your staff
• The activity is routine or temporary, is not the main focus of your company
• It is less expensive to have the job done by external experts
• The task demands too much efforts to be managed in-house
• Narrow specialization is required to fulfill the project

When to be wary

• Sharing proprietary details

  Protect your business secrets making an outsourcing contract

• Long-term contracts

  Reserve the right to change the terms of the contract in special cases (market price change, unsatisfactory service level, etc.)

• Decide if the function is the core of your business, or a subsidiary process
• Determine the costs of technology, equipment and people to do it in-house
• Compare to the costs of outsourcing providers
• Consider the advantages of having everything in-house against the guaranteed service level and value-added services of the providers
• Obtain multiple service quotes and references of different providers
• Make sure the potential provider has necessary skills and experience, follows strict security standards, is financially stable

• Find a reputable and compatible provider
• Establish constant communication
• Create a shared vision of the project
• Agree on standards you expect
  • Get a detailed Service Level Agreement (SLA)
  • Include effective performance measures
  • Develop a clear contingency plan and exit strategy
  • Secure insurance for emergencies