Outsourcing some of your work gives you access to the expertise of professionals without the expense of hiring full-time personnel. However, it is important to select qualified vendors and match them to the right projects. Here are some steps to help you accomplish this.
Be Specific About Your Projects
Before outsourcing projects to a service provider, clearly delineate the scope of the job. Vendors need specific information about what the task is and how you need it done before they can submit proposals along with scheduling and pricing. If you’re working with a provider for the first time, give them a small project to assess their competence before assigning them a major undertaking.
Carefully Evaluate Providers
Approach selecting a service provider as you would hire full-time staff. Request references, solicit feedback from former clients and review their portfolios and samples of previous work. Find out if the provider has experience in jobs similar to yours. Although the price is a consideration, balance it with a provider’s other qualities.
Stagger Payments
If you are outsourcing a large project, do not pay the entire amount upfront. Instead, offer a small advance, and then tie the rest of the payments to several important milestones as the project progresses.
Keep Records
While a provider is working on a complex project, parameters such as complexity, modifications, and pricing may evolve. For this reason, communicate clearly with your provider, and keep records of all contracts, notes, documents, and email exchanges. If you need to make changes to your original agreement, have the provider sign a paper attesting and agreeing to this.
Look Ahead
Be sure to clarify the ownership of the completed project with your provider, especially if it concerns a product that you plan to sell. If the project involves technology, business, or creative work that may require future modifications, be sure to negotiate and agree on a support clause.
For more advice on outsourcing business tasks, get in touch with Topfund Capital.
