What makes a good outsourcing company good? What should you look out for if you're looking for an outsourcing company to trust some of your business functions to? Cost is a factor, indeed it is but that doesn't mean you should sacrifice everything else for an easy-to-reach cost. Deciding to outsource information technology functions is already a great leap of faith, make sure you do it for the right reasons and most importantly, with the right people.



The International Association of Outsourcing Professionals (IAOP) has standards in which they categorize top outsourcing companies:

Size and growth

If an outsourcing company was able to expand its services in a short time and has become stable in its functions then it is a clear sign that that company is heading in the right direction. Growth is also particularly important in an outsourcing company as growth always mean development and production. A good outsourcing company should be able to show its growth and accomplishments. They should show a steady increase in revenue, jobs, branches and countries served.

Customer References

Just like in any normal business, the strength of an outsourcing company lies in the satisfaction of its customers. A good outsourcing company has a good background with customers. Nothing kills a business more than bad rep through word of mouth. If you have been referred to that company then chances are that company offered good services. The success of an outsourcing company can also be seen through its client company's success because the better service they give, the better image the client company portrays to its consumers.

Organizational Competencies

This can be expressed through certifications and recognitions for excellence. If the outsourcing company has actual proof of what they claim then that would be best. In looking for a good outsourcing company, you have to look for press releases and write-ups about them. The fact that there is a published article regarding their accomplishments means that this company can be trusted and that its actions are magnified and publicized. Shady companies usually don't have anything written about them and most of the time, it is hard looking for information on them. If a company doesn't receive public recognition then you know that there must be something wrong.

Management Capabilities

A company that has good management capabilities ensures stability and promises results. If an outsourcing company invests in its management system then it shows that they value time and effort. They don't waste money and costs with unnecessary things. Management capabilities can also be seen through the business's leaders and their experience in the industry.

With the current trend in information technology outsourcing, a lot of companies are sprouting like mushrooms, wanting to have a piece of the action. But taking these factors into consideration, there are really just a few good outsourcing companies around. Make sure you know how to keep an eye out for the good ones so as to get the right value for your money.