How to Choose the Right Outsourcing Service Provider

How to Choose the Right Outsourcing Service Provider

When it comes to the best outsourcing arrangements, they have one thing in common which is client-service provider agreement. It is what leads to a strategic partnership. Mutual interest is something that is a must for outsourcing to be a success for your business. As a business looking for Online Data Entry Services, high-quality is something that needs to be consistent. The outsourcing partner, on the other hand, would have an objective to create a long-term relationship with the services.


With an abundance of options to choose from, finding the right Data Entry Service Provider can be somewhat overwhelming. This post looks at 5 steps through which you can choose the right outsourcing service provider for online data entry services.

Now, outsourcing might seem simple in theory but since two parties are involved and each party has their individual needs, you need to make sure that the other party can fulfill your needs while satisfying their own.

Five Steps to Choose the Right Outsourcing Service Provider

  1. Define the Purpose of Outsourcing
    The first and foremost thing that you need to think about is what is the purpose of outsourcing? You need to understand why you want to outsource to find the right outsourcing service provider. Here are some of the reasons why businesses outsource.

    • Reduction in Costs: One of the main reasons why businesses outsource is to reduce cost. Working in a volatile environment in which there are numerous competitors and the business needs to find ways to cut costs. However, make sure not to put too much of an emphasis on cost as you might end up compromising on quality.
    • Improvement in Business Productivity: When you think about outsourcing, you should consider what the core competencies of your business are and which do not add value. By understanding this, you will come to realize that all of those activities which are not the core competencies of the business such as Online Data Entry Services should be outsourced.
    • Increases Quality of Work: By contracting services to a qualified service provider, you get the best person to do the job for you. This improves the quality of work. When outsourcing, one has to be sure that the outsourcing service provider has the experience, requisite skills and expertise to do the job the best way possible each time.
    • Integration of New Techniques, Systems and Technologies: By outsourcing, the business gets to benefit from improvement in their business model which capital risk exposure is limited.
  2. Comprehensive Research on the Prospective Outsourcing Company
    Whether you want to outsource to a local outsourcing company or an international one, the business needs to conduct comprehensive research on the company.

    Learn Everything about Outsourcing:

    To choose the right outsourcing service, you need to learn everything about outsourcing or at least, as much as you can. There is plenty of information about outsourcing which you can obtain. When conducting the research, the following are some of the studies which you should do.

    • Industry/ Market Report: Learn about the latest trends in the market/ industry and the regions in which outsourcing is growing such as the functions.
    • Feasibility Report: Determine the initial costs, the cost savings, revenue targets and the risk factors to compile a complete feasibility report to decide which outsourcing service provider to choose.
    • Speak with Companies/ Individuals Which Have Outsourced: The best way to understand outsourcing is by speaking with companies and individuals that have outsourced.
    • Due Diligence: Make sure to consider due diligence.
  3. Send a Request for Information Sheet (RFI)

    Once you have become confident with the list of prospective outsourcing companies, have a request for information sheet (RFI) filled by them. It should include the following.• Current Operational Workflow
    • Number of Employees
    • Associations
    • Accomplishments
    • Core Competencies
    • Social Media
    • Company Website
    • Number of Clients
    • Experience in the Industry

    If the outsourcing service provider refuses to provide business papers, or provides invalid or outdated business papers, an inactive social media profile, and has no website, then you should look elsewhere.

  4. Create a Partner Qualifying Process 

    Outsourcing is similar to hiring a full-time employee. There is a qualifying process in place to hire the right candidate and it should be the same for an outsourcing company. A partner qualifying process should be designed and developed to choose the best outsourcing partner. The RFI is a part of the qualifying process.The next step would be to invite the list of candidates/ outsourcing companies for an online interview by using Viber, Skype or any other platform. Have a list of questions prepared to discuss the important issues during the interview such as the following.

    If you are looking to outsource from a remote location such as Pakistan or Malaysia, then language and cultural issues should also be discussed.

    • Does the company have an employee evaluation process?
    • Are employees trained, and regularized?
    • Is there a Process Improvement System in place?
    • What are the disaster recovery plans?
    • How is talent sourced and what is the hiring process?

  5. Have a Contract in Place 

    Finally, remember to have the engagement covered by a contract. The following are what is meant by contract.

    • Memorandum of Agreement: It summarizes all of the conditions of the agreement and includes a detailed summary of obligations for each of the party.
    • Confidentiality Agreement: It is intended for protecting the information and interest of both of the parties.
    • Service Level Agreement: It would define the guidelines and level of service. Remember to have the agreements notarized and send a copy to the outsourcing partner.


By outsourcing, the business will be able to focus on its core competencies and achieve much more with limited capital. The world we live in is an uncertain place which is why the above will help you choose the right outsourcing partner.



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