Today, outsourcing has been a common practice for both large and small enterprises. Several companies opt to outsource certain business functions and see it as a good business strategy. This new business model has been widely accepted and practiced in both public and private sectors due to the multiple benefits it provides.

Why do companies outsource some of their business functions? Outsourcing a service can be cost-effective as it reduces overhead cost, relieves resource shortage, provides access to a great talent pool, and can also eliminate investment in infrastructure and technology.  More often, for most SME owners, none core functions like HR, Payroll, Finance and Accounting are sourced out. Exploring back office outsourcing solutions enable companies or business owners to focus more on their core competencies and augment business growth.

Choosing the right outsourcing partner is a long and critical process. It is a major business decision that needs careful selection and examination of potential service providers. So, before you plunge into that contractual relationship, below are the factors that you should consider before choosing an outsourcing company.

Reputation and Credibility 

Company Image is important. Good company reputation will give you assurance that you are partnering with the best. Quality should never be compromised. Nowadays, with the availability of the internet, a simple Google search can show your prospect’s online presence. Feedback from their past clients can easily be found in various social media and testimonial websites. These feedbacks will tell you how the company carries out their commitments.


Evaluate the workforce. Assess and understand the company’s skills set as well as the nature of their expertise, ensure that their pool of experts matches the requirements of your company. By doing so, you will be assured that you are choosing a partner who can provide you with quality output and can deliver the tasks on time. Do note, however if you are outsourcing for a technical role, directly communicate with the team lead so expectations are clearly set.

Financial Stability 

Financial security is a must. Make sure that your potential provider is financially stable and can be credit-worthy in the long term. Since they are tasked to handle some of your business functions, make sure that your provider is going to be available for as long as you need their services.

Data Security

Privacy and data security are major concerns. During your engagement, your outsourcing partner will have access to sensitive business information, you have to make sure that no breach can take place or no confidential information will be disclosed. For your company’s protection, ask your provider to sign a non-disclosure agreement before you start with your project.

Communication and Accessibility

Establish good communication. Make sure that you and your outsourcing partner can efficiently communicate and can speak your language to prevent misunderstandings.

You should be able to reach your provider whenever necessary in whatever communication channel available (e.g. email, phone, and direct messaging). Communication is vital in this arrangement as it will play a big part in the success of your partnership.

Finding a dependable outsourcing partner is no easy task. Carefully choose your provider. Rushing your outsourcing decisions may possibly put your project at risk and may affect your business in the long run.