Choosing an offshore outsourcing partner is a bit like recruiting a new employee (or team of employees), except the person or people you’re employing are likely to be sitting thousands of miles away and you may never get to actually meet them face-to-face.

So, how do you decide which offshore outsourcing provider is right for your business?

1.     Flexibility – in any new relationship you can never be quite sure how things will turn out, that’s why it is critical to ensure that there is enough flexibility built in to your arrangements so that you can quickly get out of the relationship if things don’t work out as you’d hoped.  A great way of minimising risk is by asking for a trial before you commit to a longer term arrangement.  By running a small scale trial with the provider in a low risk area of your business you can quickly get a feel for whether the relationship will work for you.

2.     Reliability – with a new employee you are likely to take up references before you take employing them permanently.  Testimonials from providers’ existing customers can be useful (as long as they’re genuine!) but often client confidentiality clauses mean that they can be difficult for providers to give.  Again, running a short trial (1-3 months) can be one of the best ways gauge a provider’s reliability and their capabilities. Offshore outsourcing companies that have offices in the UK are likely to be more reliable than pure offshore companies, as the considerable costs of setting up operations in the UK mean they have to ensure high standards of service.  Finally, if a provider is a member of a trusted industry body or institute such as CIMA or ACCA, this provides further assurances that they are either regulated or adhere to certain codes of practice.

3.     Market Knowledge – understanding a client’s business and operating environment is key to ensuring a quality service.  For business process outsourcing (BPO) work, providers should demonstrate solid knowledge of UK statutory standards and commercial practices so that they can deliver the services that UK companies need.  An onshore-offshore provider is a significant asset in this respect, as it can combine local business knowledge with a low cost offshore operating base.

4.     Infrastructure & People – ultimately the service you receive is only as good as the people and infrastructure that deliver that service.  Understanding what facilities a provider has, what back-up and disaster recovery plans they have in place, the experience and qualifications of their staff and their software expertise are all important factors in ensuring a high quality experience.

5.     Personal Relationship – this is the ‘x’ factor in any successful outsourcing initiative.  If the provider is on your wavelength, demonstrates understanding of your business’ needs and communicates effectively, you are much more likely to build a strong and lasting relationship which will reap benefits for your business in the future.

Outspan can provide you with flexible, highly skilled outsourcing staff at very competitive rates – including Chartered Accountants, experienced bookkeepers and back-office staff.

More information on outsourcing your finance function can be found in the following technical paper (written in conjunction with CIMA):   http://www1.cimaglobal.com/cps/rde/xbcr/SID-0AE7C4D1-EBC5DA21/live/cid_tg_finance_acc_outsourcing_june08.pdf.pdf