Balancing the Outsourcing Equation Business managers are often faced with the dilemma of making a choice between a professional BPO Company and an in-house team to take care of their projects. Typically, the very first question that arises in their minds may be ‘Which services (if any) are to be outsourced.’ Before making a decision, they should be clear on which option is more profitable, the cost of running that service in-house or outsourcing it to reliable partner --- provided the quality of the service remains outstanding in both cases. Evaluating In-house and Outsourcing Costs To get a clear picture regarding the cost, evaluation should be done by applying the same set of specifications to both internal and external services. This principle can also be applied when evaluating supplier catalogues. Organizations use evidencebased measurement and price/performance comparison to assess the functionality of their IT departments. This helps them to understand where price cuts can be made or improvements can be achieved. You may come to a decision as regards outsourcing vs. carrying out the tasks inhouse by comparing the data obtained based on the cost factor alone. However, it is very important to understand that cheap services are very likely going to be of a lower quality, less efficient and end up costing more in the long run. The right step would be to evaluate the cost in terms of performance – consider whether the pricing is affordable taking into consideration the quality of service. When Selecting a Service Provider You must be vigilant on certain factors, when selecting a service provider. Here are some questions to ask when looking for a reliable outsourcing partner: • • • •
What can be expected from the supplier? How to approach a supplier? How to ensure the service provided is worth the amount you pay? How to make sure whether the contract or service level agreement (SLA) is transparent?