Outsourcing is a great investment for start-ups and small businesses. Other than allowing you to save money, it’s also an efficient way to get results while easing your company’s workload. However, enlisting the services of an outsourcing company doesn’t necessarily mean you’re set up for success. The key lies in finding the right outsourcing partner

If you aren’t asking the right questions when performing due diligence, you’ll likely miss key warning signs and end up with an incompetent agency. Not only can the wrong outsourcing partner compromise your service quality, but it will also prove to be a tremendous waste of your resources.

Even though your outsourced agents aren’t internal members of your business, they play a role that is just as crucial as your regular employees. Your outsourced team must be able to deliver significant results and perform the required duties just like any other department in your company. 

How to Spot a Bad Business Partner

In order to gain an advantage on your competitors, while dodging unnecessary obstacles, you’ll need to be very cautious when choosing an outsourcing solutions partner. This guide will list the outsourcing red flags to look out for, so you can avoid teaming up with a bad business partner. 

  • The agency applies the same solutions for all clients 

Different problems require different approaches. Good outsourcing agencies are aware of the fact that each business has its own unique demands. Beware of agencies that immediately start telling you how their customer support programs will work before they’ve looked into the uniqueness of your customer’s concerns.  If your partner is applying the same tactics and techniques for all its clients, this may indicate complacency. The strategies they’ll apply to your business are likely going to be ineffective.

A good partner will take the time to review the intricacies of your business and provide solutions that are customized accordingly.

  • Your company values don’t match

Your company values will guide and define how your employees should approach their work. If your partner agency has a different way of handling tasks, problems, and clients, your outsourced team may not work as well with your in-house staff.  

Work with a company that has a similar vision and your partnership will run more cohesively.

  • The agency is not transparent with you

Transparency between teams is essential for a successful collaboration. Keep in mind that any reputable agency regularly reports their strategies, progress, and results. If your outsourcing partner is leaving you out of important communications, not consulting with you on critical matters, or worse, not informing you when issues arise, then it may be cause for concern.

Search for an outsourcing partner that practices a culture of openness. Being in constant communication will ensure that your business runs smoothly.

  • Your client’s satisfaction is being negatively impacted

Decreasing client satisfaction is as clear an indicator as any that your outsourced team isn’t delivering results. This is especially true for businesses that outsource customer support services.

When the satisfaction ratings of your customer support continues to fall despite your best efforts to align with your agency, it may be a sign that you need to show them the door. If your agency is hiring unqualified agents or failing to train them, it impacts your business negatively. So, keep a close eye on your satisfaction rating.

  • The agency is notorious for having high-attrition rates

High-attrition rates show that a company has poor management, ineffective policies, below market compensation plans, and internal conflicts. This is something you want to look into with your outsourcing partner.

A company that has a good relationship with its employees is often more stable and easier to work with. When issues are present within your partner agency, there’s a good chance that the quality of their work will be affected. Inconsistencies in their service will threaten the overall performance of your business.  Additionally, a partner with high attrition rates obviously has to continually replace the agents assigned to your account, which means rather than having a team that gets better every day, you are stuck with a team that is in a perpetual state of training.

  • The agency has a bad financial standing

A company’s financial standing shows its ability to handle resources. Before you sign a contract, make sure to verify the agency’s financial records. An outsourcing provider that is plagued with financial problems shows that it isn’t suitable for handling your business. More importantly, partnering with a company in poor financial health could prove to be a liability for your business. For example,  imagine having a partner that suddenly goes bankrupt or simply can’t afford payroll for it’s employees, leaving your customers without a point of contact in their time of need.

READ THIS RELATED ARTICLE: Outsourcing vs. In-House Recruitment: Which is Better?

Choose the right agency

Now that more brands and businesses are entering the market, ramping up your company’s growth should be your main priority. If you see the red outsourcing flags we’ve listed above, it may be best to terminate your contract and look elsewhere. Stay on top and don’t allow a bad business partner to slow your progress down. 

By keeping all these signs in mind, it should be easier for you to spot and avoid incompetent agencies. If you’re searching for a company to worth with, here are two simple tips to make the process easier.

First –  Don’t let cost be the only deciding factor. A cheap price tag doesn’t necessarily mean that you’ll acquire top of the line services. Above all other factors, never hesitate to invest your resources in quality.

Second – After making a well-researched list of your potential partners, don’t rush into making a decision. Meet with your prospects and don’t be afraid to ask the hard questions. More importantly, do your own research. After all, finding an outsourcing agency is just as crucial as recruiting for an in-house team. 

Do you want to acquire high-quality outsourcing services at an affordable price? Whether it’s managing your administrative tasks, handling your recruitment processes, or providing excellent customer support, SuperStaff provides outsourcing services that will elevate your business.

Ensure your business success with the right outsourcing solutions
SuperStaff provides outsourcing solutions that are tailor-fit to your business needs.
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