This document discusses factors for HR to consider when selecting outsourcing partners. It emphasizes the importance of evaluating partners' competency, capability, compatibility, collaboration, and consistency. HR should ask questions to understand the partners' industry knowledge, experience, expertise, and alignment with long-term strategy. Reference checks and proposals should also be reviewed. HR must perform due diligence and define clear expectations, terms, and SLAs to ensure the partnership meets objectives and provides the expected quality and value. People integration and cultural compatibility are also important for long-term sustainable partnerships.

3. partners, enabling negotia­
tions and setting expecta­
tions right in Service level
conversations.
With tough competi­
tion and availability of
outsourcing partners in
abundance, it is very
important to make
wise selection and
conduct background
check to ensure that the
outsourcing partners are
qualified to suit the na­
ture of the process being
outsourced. The below
stated FIVE C's can measure the
qualified partners and limit the
scope for landing up in turbulent
partnership:
1. COMPETENCY
2. CAPABILITY
3. COMPATIBILITY
4. COLLABORATION
5. CONSISTENCY
HR needs to brainstorm and seek answers to their own
questions to define the FIVE C's. Do they know your indus­
try? Have they ever dealt with similar clients like yours?
Do theyhave relevant experience and exposure to suit the
nature of your process? Are they competent and have the
desired expertise on the process, and are they prepared
to work with you to achieve your success criteria? What is
long term vision of partner you arechoosing? Is it aligning
with your long term strategy?
Ask for work samples I prototypes and references for
better understanding of partner's scope of work, quality
of service and time bound deliverables. Once the list of
potential & relevant outsourcing partners is drafted, re­
quest them for the proposal presentation. Evaluate each
proposal to filter out the best one who meets your busi­
ness needs. Do a thorough investigation by seeking input
from all stakeholders of the processes being outsourced.
Outsourcing would mean turning an integral part of
one's organization success over to external partner. Read­
ing between the lines. HR must do their due diligence and
never be 'Penny' wise and 'Pound' foolish, and ensure you
get what you pay for. To best capture any proposal. first
HR along with the Subject matter expert should define the
expectations, terms and conditions.
Elaborating the above stated steps means to define
statement of work, performance indicators and ways of
measuring a supplier's performance in terms of accu-
racy, quality /standards. availability. capacity. reliability.
identify SPOC and escalation matrix, user-friendliness,
meeting timelines, compliance, termination clause in case
of breach. In additions HR and stake holders must avoid
unrealistic expectations and well defined SLA aligns the
service provider'sinterest with your organization's objec­
tives through service level credits and termination rights.
While reviewing and concluding among all the proposals,
HR must trigger the bells and whistles to ensure clarity,
transparency and compliance.
Negotiation is a default attribute of business, but nego­
tiating over the cost of activities and overlook the ultimate
objective will result in drastic fall out. HR must be vigilant
and ensure keeping track with the big picture while ne­
gotiating. A well negotiated contact is the package of key
elements that address service-level agreements, penalties
and rewards, time frames and measurements, regular re­
views and exit strategies.
HR must partner with all stakeholders in selecting an
outsourcing partner. Align meetings& structured reviews
at regular intervals with your outsourcing partner to stay
informed and discuss theday-to-dayproblems they've en­
countered. This will help prevent potential problems and
improve how your business operates.
,,_____
While reviewing and concluding
among all the proposals, HR
must trigger the bells and
whistles to ensure clarity,
transparency and compliance
HR needs to facilitate People Integration and Cultural
Compatibility with the partners. Long-term successof such
partnership depends on cultural integration, transparency
andcompliances. HR should have a long term view and un­
derstanding of people practices of probable partners and
how fast they can adapt to firms culture and Organization
values. To create a synergy and win-win partnership, it is
important to have people, process and culture alignment.
HR has to value add in terms of understanding people and
culture compatibility for a long term sustainable relation­
ship with a partner.
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