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December 11, 2001
Outsourcing Work Shouldn't Be A Daunting Task; I-ology® Offers 7 Keys to Finding the Ideal Vendor
SCOTTSDALE, Ariz. - Your company has made a critical decision to outsource a project or even an entire function of the business to a vendor on a contract basis. But how do you select a qualified vendor who will work well with your company and get the job done?
"The process of selecting someone to do contract work for you is important, but it doesn't have to be a daunting task," says Patricia "Trish" Bear, president and chief executive officer of Scottsdale-based I-ology®. "Once you know what to look for in the ideal vendor, it's simply a matter of focusing on those essential characteristics as you evaluate different companies."
I-ology, a full-service Internet consulting and services firm, offers the following seven keys to selecting an excellent vendor.
No. 1 - The Consultive Approach. An excellent vendor knows it must understand your company's objectives and will want to analyze your business and what it's trying to achieve. This consultive approach allows the vendor to focus its expertise on the job to be done. "A vendor's employees can bring a broad perspective and a diverse set of skills to bear on the work you require," Bear says. "Basically, you have a team you can collaborate with."
No. 2 - Rate of Accountability. Vendors get paid as they work, and a stellar vendor knows it must have a high rate of accountability to keep getting your business. Review past projects and let the vendor's work speak for itself. "Also look at how long the vendor's employees have worked for the company," Bear notes. "Interview several employees and get a sense of the vendor's work culture."
No. 3 - Work On A Trial Basis. Ask if the vendor is willing to initially work on a 60- to 90-day trial basis before signing a long-term contract. If the answer is no, move on. A trial run gives you the opportunity to determine if the vendor you've selected is the right one for you. "During a trial run, look at how well the vendor works for you, closely examine its billing procedures and monitor how it resolves issues," Bear says.
No. 4 - Work On A Part-Time Basis. Sometimes, it's cost effective to vend out a staff function on a part-time basis versus hiring a full-time employee. Will your vendor do that for you? "Some small businesses outsource the chief financial officer job if that function hasn't grown large enough to justify hiring a staff member," Bear says. "What you get from the vendor is a highly skilled person for a set number of hours."
No. 5 - Primary Contact. If you start to get serious about a particular vendor, ask who would handle your account and meet that person. Make sure someone will be dedicated to you. "If you have questions or an issue that needs to be resolved, the last thing you want is to get bounced around within the vendor's company," Bear points
No. 6 - Beyond the Dollars and Shopping Around. The cost of hiring the vendor must be taken into account at some point, but don't let the numbers scare you. Outsourcing is generally cost effective. Shop around for price comparisons to be sure you're getting a fair rate in your market. "Sometimes the hiring company will waiver and lean toward letting a staff member take on the project," Bear says. "They're not looking beyond the 'hard costs.' It's more cost effective to let the staff member focus on their core function and hand the project over to a vendor."
No. 7 - References. A reputable vendor will provide you with references but you need to be prepared to get the most from them. "Draft a list of questions to ask each reference," Bear recommends. "Ask how well the vendor performed. Ask if the vendor came in under or over budget. Ask if billing went smoothly and if the vendor was adept at resolving issues."
I-ology offers its clients a full range of business consulting and Internet services, including Web site design and development, database development, back-end integration, e-commerce, online marketing, e-mail and high-end site hosting for a wide variety of high-profile clients. I-ology may be contacted at its Web site, www.i-ology.com, or at 602-992-3161.