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Especially for smaller businesses, outsourcing is often a good idea.


As we have discussed on this site before, there are all kinds of tasks you can outsource, and by doing so, you might save yourself time and money within your business. You can grow your business too, as with a marketing firm on your side, you can make deep inroads into the consumer marketplace. You might also save your business from financial ruin by acquiring the services of an accountancy firm. 


So, as we said, outsourcing is a good idea. 


Well, it is until it isn’t! 


If you were to outsource to the wrong company, then your business might actually suffer. It’s important to ask the right questions at the outset, as by doing so, you will have a better idea on whether the firm in question is worth outsourcing some of your business tasks to or not.


Consider the following.


#1: Can you showcase your credentials?


Before picking an outsourcing provider, you need some proof of their credentials. This might be references they can show you from happy clients, and certifications that pertain to the industry they are involved in. When choosing the best advertising and marketing agency, you might ask for examples of the advertising strategies they have provided for other companies, and if choosing a web design company, you might ask for examples of the websites they have already created. By asking for such credentials, you will then have peace of mind, because you won’t be blindly putting faith in a company that has no previous track record.


#2: How much do you cost?


This is probably the first question you would consider, and rightfully so, as you need to ensure you have the budget to pay the outsourcing provider in the first place. You might get into legal trouble down the line if you failed to pay up on time. Asking for the price will also enable you to compare other providers. If you can find a similar company offering similar services, then quite naturally, you might turn your attention elsewhere if you can find better value for money. You should also be mindful of hidden costs. If the company in question only gives you an estimated price, you might be stung down the line by an expense you weren’t made aware of. Your best course of action is to nail down an actual price before signing a contract with them, as this way, you won’t be surprised (or ripped off) later.


#3: What is your competitive advantage?


In short, why should you choose them over another company? If they have a competitive advantage, then you have greater reason to select them as your outsourcing provider. So, they might promise a quicker turnaround of your project, especially if they have the manpower available to commit to this promise. They might use technologies that other companies aren’t privy too. And they might be able to offer extra services at little or no extra cost. If they don’t have a competitive advantage, you might still choose the company in question, although it is still worth your time researching other companies before you make a choice. 


We hope this advice has been useful to you, but let us know what you think. And if there are any other questions that you think are worth including here, please share your suggestions with us.


If you get any value from this post be free to comment or share. Also feel free to connect with me on Facebook or Twitter!

Hrvoje Horvat

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