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Outsourcing Cycle: Auditing Outsourced Services & Choosing Your Next Provider

Staff Outsourcing is the proactive use of a professional employment organisation (PEO) to support business functions that an internal human resources department previously handled. It is a business strategy in which organisations outsource primary business functions to specialised and efficient PEOs. As a result, the contractor becomes a vital business partner assisting the organisation in meeting its goals. In addition, staff outsourcing relieves your management team of the burden of increasing internal headcount while allowing your management team to focus on the core business.  

  In the management and monitoring stage of the outsourcing cycle, it is critical to conduct a post-execution review to assess how well the transition went. This process evaluates the project’s outcomes, identifies vital lessons learned, and develops an action plan based on the findings.   

  When it comes to staff outsourcing, there are three stages involved: renewal, transfer, and exit. If you choose the exit option, you will most likely be looking for another outsourcing service provider or bringing the outsourced services back in-house, which can be difficult because it requires the capacity and expertise of the in-house team. This then necessitates an audit of your current outsourcing service provider.  

How to Audit Outsourced Staff Services

How to Audit Outsourced Staff Services​

As important as it is to have faith in your service provider, that faith must always be accompanied by accountability and transparency. As a result, you must regularly monitor the quality of services provided by your service provider, as agreed upon by both parties. Here are some tips to help you ensure that your service provider performs the outsourced functions with integrity and efficiency.

1. Maintain a close eye on the process

Depending on the scope of the outsourced project, keeping an eye on the process to ensure a smooth transition is beneficial for the first few months because both parties have only recently met, and your response to any emerging issues that require clarification will be critical. This will make the transition period’s learning curve shorter.  

2. Establish clear expectations

It is advantageous to bring your internal policies and procedures to the service provider’s attention that they will be required to follow by defining the expected operations flow from the start. For example, inform the service provider of your leave policy and the procedures that must be followed, your preferred method of handling grievances (the roles of both parties in the process must be clearly defined), and cultural sensitisation, which aids in the establishment of clear boundaries, also bring to the attention of the service provider your policy on concerns and complaint handling, as well as your escalation protocol.  

3. Obtain feedback from outsourced employees

Feedback from outsourced employees is the test that determines whether the services you are receiving are of value or not. You could choose to get the opinions of a few outsourced employees at random based on their experience. For example, do they receive their pay on time? Is the service provider proactive in reaching out for information about their employment? Do they receive a detailed pay slip in accordance with their contractual agreement? If your outsourced employees are satisfied, then your service provider is doing a good job.  

How to Choose Your Next Staff Outsourcing Provider

So, after you have audited your current outsourcing provider, the next step is to evaluate the process of selecting your next outsourcing partner for the new outsourcing cycle. 

 Below are the factors to consider: 

1. Reputation and quality of service

Reputable businesses prioritise quality and ease of doing business. Making sure you fully understand an organisation’s reputation before partnering with them will ensure that you make the best choice for your organisational needs. Reaching out to previous and current clients will provide insight into what it will be like to work with the outsourcing vendor. Checking the organisation’s reviews is also an excellent practice before deciding which company to work with. While many strong vendors may lack the advertising costs to get their names out there, you can discover a lot about a vendor’s reputation by talking to its clients. It is much easier to understand what customers think about a vendor these days, thanks to social media, website testimonials, and so on. After evaluating an organisation’s reputation, you can easily decide how to outsource your business. A good market reputation is an excellent indicator of a great outsourcing provider. 

2. Scalability and cost-effectiveness

2. Scalability and cost-effectiveness​

Every organisation should choose a scalable outsourcing partner dedicated to outsourced business activities. A scalable BPO service provider is essential in terms of facilities and resource resilience. Scalability is crucial in meeting desired client requirements while not increasing the company’s overhead costs. Before selecting an outsourcing partner, it is essential to keep cost-effectiveness in mind. It is best practice to compare the prices quoted by various outsourcing companies and assess the quality of their services. A significantly lower quoted price may indicate poor service quality, whereas a high quoted price may be a premium price that not every company can afford. As a result, make your decision and choose wisely in accordance with your budget. 

3. Look for prior experience

Finding an outsourcing company with a good experience level and satisfied clients will be crucial when deciding which outsourcing organisation to partner with. If a business process outsourcing company has worked with clients for over a decade, it indicates that the organisation provides high-quality service. Partnering with an outsourcing organisation like Workforce Group, which has over 18 years of experience and has outsourced more than 8000 workers, is beneficial to your company. Trusting that an organisation has sufficient expertise for your needs will make the hiring process much smoother and risk-free. Conduct company research by looking for testimonials, quotes, and referrals because, in any industry, experience counts for everything.  

4. Culture and value alignment

When evaluating potential outsource partners, consider whether their attitudes and approaches are consistent with your organisation’s core culture. You should ideally bring in a partner who understands and respects the issues important to your organisation. Your choice of outsourcing partner should share your values and understand how you define success. The more you and your business process outsourcing partner are aligned, the more invested you both become in your organisation’s growth. When looking for an outsourcing partner, share your organisation’s mission and vision with them and discuss their mission statement. Having this conversation will help you identify the best organisation to partner with.

5. Capacity and flexibility

Is the outsourcing partner big enough to handle your needs but small enough to prioritise them? It would be preferable if you worked with a partner organisation that respects your company and offers personalised service and a comprehensive solution that can be quickly scaled up to meet changing business needs. The vendor’s approach must be flexible in addition to providing an agile resource. Examine whether the outsourcing partner you’re thinking about working with is consultative and willing to tailor a solution to your specific and complex needs or if they will interject you into their processes. A flexible attitude is not only required at the beginning but also a valuable quality in the long run. 

Implementing metrics and a proper evaluation structure will assist your company and vendor in determining your partnership’s value. Accurately measuring a provider’s performance on outsourcing projects aids in the formation of a strategic partnership.  

Workforce Outsourcing understands all the challenges associated with outsourcing and works with clients to mitigate these risks well in advance. Our returning customers attest to our dedication and professionalism in the workplace and our excellent after-sales service. Working with or alongside us has the advantages of being cost-effective, responding quickly, and completing projects on time.   

Click here for a free consultation session with us today.  

Nneka Eneli

Nneka Eneli

Director, Workforce Outsourcing

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