10 Keys To Outsourcing By Ryan Mortland


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10 Keys To Outsourcing presented by Ryan Mortland at a recent RISE Lunch in St. Louis, Missouri.

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10 Keys To Outsourcing By Ryan Mortland

  1. 1. 10 Keys to Outsourcing<br />Ryan Mortland<br />President, MB Consulting Group, Inc.<br />
  2. 2. Don't hand over the core functions of your business. Consider outsourcing other operations that are not as strategic. <br />1. Define your core<br />
  3. 3. Ask questions, check references and ask for feedback from other clients who have used the provider's services.<br />2. Evaluate a service provider like you would a full-time employee<br />
  4. 4. Be up front about your project requirements so that service providers. Review schedules and deliverables.<br />Understand what is IN and OUT of Scope.<br />Get it in writing.<br />3. Clearly define the scope and schedule for your project<br />
  5. 5. Discard the highest-priced and lowest-priced bid. You want a balance of good value and quality results. Consider management costs and watch out for hidden costs, consider everything from layoff-related expenses and telecommunications costs for remote workers. <br />4. Don't choose a vendor based solely on price<br />
  6. 6. Consider asking the provider to do a quick mock-up or provide a basic outline of a work plan. You want a company with industry specific experience or a project that is similar to the one you are undertaking. <br />5. Review portfolios and samples <br />
  7. 7. Having scheduled checkpoints where you review the status of the project is an easy way to ensure you meet your deadline and the final product meets your standards. Tie the vendor’s payment to these milestones. <br />A good guideline for IT and software development projects is to pay no more than 20% to 30% of the total project price up front, with the rest of based on the completion of 3 or 4 milestones.<br />6. Tie compensation to clearly defined project milestones<br />
  8. 8. You must be clear who owns the resulting work product and any important components of that product. <br />The service provider must understand how you intend to use the deliverables they are agreeing to provide. Don’t forget to drafta support clause that ensures you'll get continuing support from the vendor after the project is complete. <br />7. Negotiate ownership of the work up front and after<br />
  9. 9. Keep a written record of project goals, pay schedules and any changes. <br />Get Change Orders in writing.<br />8. Get it in writing<br />
  10. 10. Start with a project that is relatively small and simple in scope to give you a better idea of the provider's style and capabilities. <br />Don't sign a five-year contract before testing performance and the relationship. Move slowly and commit gradually.<br />9. Start Small<br />
  11. 11. Consider entrusting an in-house manager to oversee the outsourced help. <br />10. Consider having a staff employee(s) act as a liaison<br />