Local Outsourcing - How to Choose the Right Provider

The last article I wrote spoke on why companiesthe best report with. If you were hiring internally you
should outsource certain jobs. This article will deal withwould choose the person that would fit in the best, this
how to choose the right company to provide thosedecision should be viewed exactly the same. These
services. Let's start by looking at what is important topeople may not be in your building, but they are still
business owners. The top three agenda items for a"employed" by you, and they are providing services
small business owner are: decrease expenses,that your company must have, so choose a company
increase productivity and increase revenue. All ofas if you are choosing an employee.
these items basically add money to the bottom line forA few other things to ask for
a company, and in the last article it was concluded thatBefore you make your final decision there are still a
outsourcing can do all three. Now that we're past thefew things you should ask for. First and foremost you
first hurdle and we have decided "Yes" I want to find ashould ask for references, preferably companies in
local company to take some of these tasks off myyour same field and about the same size. Then you
hands that don't generate revenue - now what?need to actually call the references. More than likely
Define your needsthey will be happy clients (or they wouldn't be
The first thing to do is sit down and make a list of allreferences), but you should be able to get a good feel
the functions you need someone to provide. Forfor the quality of service they perform. Next you need
example number one, let's look at finances. You mayto ask them about the logistics of working with them;
need someone to do payroll, invoicing, book keepingdo you have one main person to call, do they have a
and taxes. Once that list is all inclusive, you can begindocumented Service Level Agreement (SLA), how do
the search for a company that meets all of thoseyou escalate an issue etc. If a company is handling
needs.your books make sure that you have complete
Now let's consider outsourcing your IT, what level ofaccess to all your records. It is your business and you
service do you need? A good place to start is with astill have to make sure that the money balances each
list of equipment, operating systems and applications. Amonth. If you have a company that manages your
managed service provider (MSP) will need thisfinances and all your books, then try to never write a
information to determine if they can truly provide youcheck yourself, submit it to your CPA to cut the check,
support (if they don't ask - that's a red flag). Your listit will be easier for them and they will be better
should include servers, desktops, laptops, routers,equipped to track all your debits and credits if they are
switches and an accurate number for each. If youthe only ones writing checks.
have special "home grown" applications, it will usuallyAnd specific to IT ask for the following:
be an issue, so be forewarned. After you have the list1. You should have complete access to your own
you will need to determine importance of each deviceservers (logins, passwords and full Admin rights).
e.g. - these servers are essential, these servers are2. The MSP should keep current Doc set - and you
important, and these servers are less important etc.should always have access to it.
This will help you determine what level of support you3. The MSP should be able to tailor the support to your
need for each device. Customizing your solution thisneeds - not try to fit you into a pre-built package.
way can ensure that you get the appropriate level of4. Again, get references - and call them!
service at the best price (i.e. you are not paying for5. Ask them to provide documented SLAs (Service
platinum level support on an old work station that'sLevel Agreements) - how long until they respond to
hardly ever used).and issue, and how long on average to resolve an
Interviewing prospective providersissue.
Now that you understand what services you need, it's6. Ask if they have a help desk tool available to all end
time to determine who will provide them. I suggest youusers.
look at this task the same as if you are hiring an7. Do they have the ability to remotely monitor and
employee. Do formal interviews with the top threemanage systems on the network? The more they
candidates you choose. Gather all their information, notcan do remotely, the better (for everyone).
just their price list. The functions you are choosing to8. Ask them if they have any type of accreditation or
outsource are still vital to your business and you shouldawards.
make an educated business decision. Cheaper is notThe goal of (local) outsourcing is the fabled win/win. A
better, what ever suits your business needs at a fairlocal company provides you a service cheaper, better
price is better. What good would it be if you savedand more efficiently than you can provide it yourself.
$100 or even $500 a month with a small CPA firm butThey keep you happy by doing a good job at a fair
they took weeks to invoice, weeks to do deposits andprice and you in return stay a client for years. As your
totally ruined your cash flow? When you meet withbusiness grows because you are lean and efficient,
the prospective companies ask to meet the team thatyour needs from your outsourced company grows
will handle your account. These are the people youincrementally, they are happy, you are happy and you
want to interview, since these are the actual peoplepass leads to each other like true business partners.
you will need to interface with. If you narrow yourSo take your time and choose a company to provide
decision down to two companies and everythingservices that you feel comfortable with, because if all
seems to be equal, go with the company you havegoes well, you will both grow together!