Outsourcing lets organizations reduce operational costs, focus on their core competencies, and leveraged specialized skills and expertise that they may not possess in-house. Companies can choose to outsource a piece of business long-term or simply acquire help on a project-to-project basis.

With so many outsourcing vendors and arrangements to choose from, how should an organization go about finding the best partner for the job? Here are seven insights for making the right outsourcing choice.

1. Define the objectives. For instance, are you outsourcing a call center’s activities to contain costs or gain sales? Will you expect short-term or long-term results? Conduct a basic needs assessment and be clear about goals and timelines before beginning a search.
   
   
2. Examine the vendor’s credibility. Conduct an on-site visit with prospective providers. Meet the team members with whom your organization will be working and evaluate their overall expertise. Determine whether a provider has a track record of success and satisfaction, and if it has received any industry distinctions. If possible, test-drive products or services before buying.
   
   
3. Investigate the vendor’s background. Verify the vendor’s experience and years in business. Determine whether the organization has experience in your specific industry or with companies like yours. Ask for a list of customers and call them for their perspectives on service, reliability, strengths, and possible challenges. Ensure that the provider is financially stable and ask for a banker’s reference.
   
   
4. Establish technology requirements. Ask about the potential partner’s systems, architecture, response times, and access. Most importantly, discuss security, both the protection of any information that’s being shared and its retrieval in light of a crisis.
   
   
5. Consider work styles and compatibility. Seek out providers with complimentary skills and compatible business philosophies. Strive for a culture match and establish trust levels between your company and the outsourcing partner.
   
   
6. Agree up-front on standards of performance. Define expectations as specifically as possible. Request detailed documentation on the work performed, and maintain an ongoing evaluation of the outsourcing arrangement. The goal is to monitor, not micromanage. You may also wish to establish consequences around the outcomes, including incentives for exceeding expectations and penalties for failing to deliver as promised.
   
   
7. Put the agreement in writing. Create a detailed contract that defines the scope of services as well as the deliverables, and include a termination clause. Have it drafted or reviewed by your legal counsel.