Outsourcing is an excellent way to save money while expanding your company. But whether you want to outsource customer support, IT, or some other aspect of the business, it can be challenging to find the right partner.

Even after you think you’ve found a good fit, knowing whether you actually have can be tough. That’s why we’ve created this guide. It highlights some of the biggest outsourcing green flags you can look for to determine whether you’ve found an ideal business partner.

So let’s get started.

Outsourcing green flags

Green flags are signs that you’ve made the right choice. But even if you notice one or two of them, a provider can still be lacking in other important areas.

That’s why it’s important to consider all of these green flags before deciding whether you’ve found a good fit or not. We cover steps to take if you’re not seeing all of the green flags you want in the next section, so keep reading if you’d like to learn more.

Experience and expertise

The first thing that you want to look for is experience in the specific thing that you’ve hired this outsourcing business partner to do. That doesn’t just mean that they’ve been in business for a long time. It means they’ve been doing the specific tasks that you’re hiring them to do for a long time, too.

For example, an outsourcing company may have been in business for 20 years. But it may have only just started offering customer service for IT companies. That’s an important distinction and one that’s worth considering as you’re evaluating whether your current partner satisfies this green flag or not.

If you’re unsure whether your outsourcing partner has the requisite experience and expertise, don’t hesitate to ask for referrals. Reputable companies should always be happy to share these with you, and they can provide great insights that you might not have discovered otherwise.

Flexibility and scalability

Another major green flag from an outsourcing partner is a willingness to be flexible and the ability to scale quickly as your business grows. Different aspects of this may be important to you based on what your business needs.

For example, if you run a startup, you’re likely going to want a partner that is capable of scaling quickly. But if you run a business with high differences in seasonal demand, it could be more important to find a provider that’s willing to scale up and down with you throughout the year as your needs change.

Strong communication

Next up – make sure you find an outsourcing partner with strong communication skills. You should have no problem getting in touch with decision-makers in the outsourced business unit when you need to do so.

This may be an especially bright green flag if your partner is willing to conduct weekly check-ins with you on a regular basis. These can be invaluable because they provide you with consistent insight into the outsourced unit’s performance over time.

If you struggle to communicate with your outsourced team leaders or they aren’t capable of meeting with you as often as you’d want, that can be a sign that it’s time to start looking at other providers.

Training & support teams

Another major green flag for an outsourcing partner is if they have in-house training and support teams. These help outsourced employees gain the skill and knowledge they need to work for your company without you having to train them yourself.

Training and support teams may not always be effective. But you can typically help them get there by offering advice and guidance when it’s necessary. The very best outsourcing companies will implement your guidance into their future training plans so you only have to say something once to get the message across.

A willingness to share

It’s also a great sign when an outsourcing partner is consistently willing to share with you. This can mean different things to different businesses.

For example, it may be important for you to see a full facility tour if you’re hiring an outsourcing company for manufacturing. If the partner is willing to do this for you, that’s a great sign.

You may also have questions about the outsourcing partner’s internal policies for hiring and training new staff members if you plan on scaling in the future. If the company is

willing to share that information with you, it’s a clear sign that it has nothing to hide and is willing to do what it takes to form a strong relationship.

Strong security measures

Data security is a very important piece of expanding your company with an outsourcing business partner. Outsourced teams often need access to walled data, but it can be challenging to share it with them securely when they don’t exist within your building.

That’s why it’s important for your outsourcing partner to take data security seriously. When you ask about this, you should get clear answers that point to security steps taken by the outsourced business partner.

If you ask about data security and an outsourcing partner only gives you vague reassurances about it being important to them without actually outlining any specific policies or practices, that’s often a red flag.

Skilled workforce

Another major green flag is an outsourcing company with a highly skilled in-house workforce. This can be a bit challenging to spot upfront, but it’s something that will always reveal itself to you over time.

If you have an existing relationship with an outsourcing company and are pleasantly surprised by the quality of work product you get from it, that’s a pretty clear sign that their workforce is highly skilled and capable of meeting your company’s needs over a longer time frame.

An alignment of values

Finally, it’s also a great sign if your outsourcing business partner has an alignment of values with your company. This doesn’t mean political or religious values. Rather, it’s about alignment in priorities, communication strategies, and other key aspects of working relationships.

If you notice that you like to do things the same way that your outsourcing partner does, that’s a great sign that you’ve found a fit that will last long term. Comparatively, a misalignment of values may create friction that could damage the relationship over time.

What are your options if you haven’t noticed these green flags?

So now that we know some of the biggest outsourcing green flags to watch for, it’s time to consider what you should do if you haven’t been seeing them. Here are a few things you can try to fix that.

Ask for more of what you want

Sometimes, a lack of green flags in outsourcing can actually be indicative of a lack of communication on your end. Your partner may want to give you a great outsourcing experience, but you may have to tell them what that looks like for you in order to get it.

That’s why a good first step is to start asking for more of what you want. You may not always get it. But you’ll never know if you don’t ask.

Implement more consistent communication

Another strategy worth trying is implementing more consistent communication. This could mean scheduling regular weekly, bi-weekly, or monthly meetings with an outsourcing leader, depending on what your goals are.

Consistent communication is important with outsourcing business partners. The more you talk with the outsourced firm, the easier it will be to create a strong relationship and get more of what you want.

Consider alternative options

If you try communicating with the outsourced firm and it just doesn’t work, then it may be time to start looking into alternative options. There are great outsourcing companies across the planet. You can always find one that’s willing to give you what you want at an affordable price point.

When you go through this process, just make sure that you ask for references. Doing so will help to ensure you get exactly what you need if you decide that it’s time to make a change.

Get a free consultation from The Cattalyst

Whether you’re unsure about a relationship with your current provider or are interested in looking at some alternatives, The Cattalyst can help. We have decades of outsourcing experience and strong relationships with firms across the planet.

Our team of experts will provide you with a free evaluation of your situation to help you decide which next step is right for you. What do you have to lose?

You can take the first step toward fixing your outsourcing problems by contacting us today. We look forward to hearing from you.