How to Get Your Vendor Selection Right the First Time

Remember These 5 Essentials of Selecting a Service Supplier

To cut a long story short, vendor selection for your outsourcing venture is not a question of opting for a vendor with the lowest price or one located nearby. It’s actually about choosing a quality vendor that is competent enough to meet your specific business requirements. A vendor evaluation should precede final selection and closing of contract.

Embrace these 5 rudiments of selecting an outsourcing service provider for enduring success:

  1. Choose a supplier that can meet your business needs: To start with, define in clear and categorical terms what you expect from signing up a third-party. Then find out whether it's the right vendor that you’re talking to. Check if it can abide by your mission statement. A suitable vendor should be able to align their performance with your business goals and naturally merge into your organizational culture. They should take a structured approach to understanding and meeting client requirements.
  2. Confirm that it maintains applicable security standards: As indicated above, it's not just a matter of cheap labor. It's also very much about process safety. Ensuring security of information is crucial since such a relationship involves transfer of confidential client data. A responsible vendor always has at its disposal means to minimize outsourcing risks. In addition to inspecting whether your vendor has data security and intellectual property protection measures, read client testimonials to get first-hand knowledge. A certified and well-established supplier is good to go for their strong compliance record.
  3. Insist on qualifications and experience:  Find out if the vendor’s credentials meet your expectations. It can be project experience, client base, industry verticals or any other indicator. Pick the one that has been in your line of business for considerable period.
  4. Ask for a work sample before proceeding further: Request a sample of the work that you intend the vendor to deliver. This will assist you in correct assessment of the quality of their work from various angles. Ask for a free trial for an evaluation in advance of both process and technology used to execute a task. Start with a pilot project on a small scale to really determine how the potential vendor performs.
  5. Ensure the supplier has latest IT and communication infrastructure: Focus on a vendor offering superior IT infrastructure with full 24/7 backup facility. Seamless communication defined by fluency in English and other major languages and assistive tools are added advantage. Both sides must be able to engage in ongoing and transparent communication in real time where coordination, workflow management and feedback are a non-issue. Make sure the vendor has the right collaborative tools and maintains appropriate communication protocol. You shouldn't face any problem establishing contact with you vendor at any time of the day.

A vendor can be your salvation or your doom. They can be the reason behind your business sustenance or sudden downfall. So, it's vital that you do the necessary homework to get the best supplier working for you.