What is the process of contracting an outsourcing service?

Today, many companies are looking to improve efficiency and reduce costs by outsourcing certain functions and processes that are not core to their business through outsourcing services.

The process of contracting an outsourcing service involves a series of steps to select the right provider, establish the terms and conditions of the service, transfer the processes, implement, manage the service, evaluate the performance, including making adjustments if necessary.

This process is important and requires close collaboration between the customer and the supplier to ensure that the expected objectives are achieved. The idea is to meet the requirements agreed in the contract.

Through outsourcing, companies can improve their ability to focus on their core business as well as increase their competitiveness in the market.

Here at Linexperts we will discover what is the process of hiring an outsourcing service. Let's start this adventure!

Outsourcing, the most profitable outsourcing of services

Outsourcing is the practice of contracting with an outside company or service provider to perform a specialized business function that is normally performed in-house but diverts attention away from the business.

Outsourcing can cover a wide range of functions, for example, IT services, human resources, accounting and finance, customer service, manufacturing and many others. The main objective of outsourcing is to improve efficiency and reduce costs for the company by leveraging the expertise of the outsourcing company, along with the economies of scale of external providers.

Process of contracting an outsourcing service

The process of contracting an outsourcing service begins before the contract negotiation procedure. In a practical way we can mention the following aspects:

Identification of the service to be outsourced. It is important to evaluate the advantages and disadvantages of outsourcing a particular service and determine if it is feasible without compromising quality or efficiency.

1. Establishment of objectives and goals with outsourcing. Once the service to be outsourced has been identified, it is essential to define the expected results, deadlines, quality levels, costs, among others. Remember that they must be logical and accessible.

2. Defining service milestones. Milestones are important reference points that help to evaluate the progress of the service and ensure that progress is being made towards the established objectives.

3. Selection of the leader and his or her responsibilities. This leader should have experience in managing suppliers and the service to be contracted, negotiation skills, and the ability to work with multidisciplinary teams. In addition, it is important to clearly establish their responsibilities and roles for this service. This leader is on behalf of the contracting company.

4. Choice of negotiators and delimitation of their competencies. Negotiators are in charge of establishing agreements and contracts with service providers. It is important to select the right ones and clearly delimit their competencies and functions.

5. Establish criteria for the transfer of knowledge of the contracting company's employees to the selected company, contract duration, control group, service level agreements if required, penalties, and main points of the contract.

6. Conduct a supplier selection process.  It is important to carry out a selection process among several suppliers, either for the first time, or those already approved within the purchasing process, to provide these services.

7. Signing of the contract. Once all the points are clear and specified in the contract, the contract is signed by mutual agreement between the parties.

In Linexperts we want you to count on us for the hiring of an outsourcing service, therefore, we have put a space on our website so you can contact us. Start NOW!