Considerations and Guidelines While Outsourcing Services..

Of an on, we have been highlighting the varied advantages and service specifications of different domains of HR and Finance & Accounting Outsourcing. However, today we would like to take an opportunity to present some Considerations that must be assumed before arriving at the decision to Outsource:

·         Examining the corporate culture- Assessing the level of readiness in the organization with respect to transferring some control/confidential information to a third party vendor in order to enhance business motives.

·         Evaluate current processes in different business verticals that are under planning to be outsourced. Companies must determine the efficiency of their processes and also whether they could be managed in a better manner by an external service provider.

·         Performance measurements- ensure adequate determining metrics are in place to assess the vendor's performance and check whether there are any workflow and process improvements or not.

Sometimes, the staff of a company such as the HR or Finance & Accounting team might be reluctant to adopt outsourcing due to fear that their role within the company will get side-lined. However, the very opposite of the same is most likely to be true. There is indeed a change in responsibilities due to the outsource partnership, but it is definitely for the positive.

The positive changes include development of the talent pool of the company teams’ to add skills such as vendor management, vendor performance management, leadership and team management. Additionally, outsourcing would enable your current HR and/or Finance & Accounting staff emphasize on the advancement of their strategic efforts rather than focussing on fulfilment of core administrative objectives. Industry statistics suggest that the outsourcing advantages offset a few of the challenges that may arise, such as a cultural shift.

Moving ahead on the decision to outsource, there are a Few Guidelines that must be followed in order to contract out your organization’s services in a secure manner. Enclosing them below-

Shortlisting the Appropriate Outsourcing Services Provider:

Selection of the right company is among the most critical steps to be followed while outsourcing. The selected vendor must have a stringent security policy. Organizations should cross check if the prospective outsourcing provider has adequate security policies for data protection, privacy and against any vulnerabilities/ threats that may arise from the same.

Well documented and complied Security Policy:

A proper security policy detailing standards and procedures applicable must be in place. The policy should have the capability to maintain the confidentiality of vital client data and must also be regularly validated by a third-party security assessment company. The privacy policies must also be clearly defined and outlined.

Data Protection Policies

Companies should select vendors that employ VTA (Vulnerability Threat Assessment) and ensure the absolute protection and privacy of their client data. Taking the above security considerations in mind will facilitate any company in selecting a reliable, secure and efficient Outsourcing vendor to execute their processes.