What criteria should you use to select an IT outsourcing partner with strong risk management practices?

1 Experience and reputation

One of the first things to look for in an IT outsourcing partner is their experience and reputation in the industry. You want to work with a company that has a proven track record of delivering high-quality services, meeting deadlines, and satisfying clients. You can check their portfolio, testimonials, and references to get a sense of their capabilities and performance. You can also look for certifications, awards, and memberships in professional associations that indicate their adherence to industry standards and best practices.

2 Security and compliance

Another important criterion to consider is the security and compliance of the IT outsourcing partner. You want to ensure that they have the necessary policies, procedures, and tools to protect your data, systems, and intellectual property from unauthorized access, misuse, or loss. You also want to verify that they comply with the relevant laws and regulations in your industry and region, such as data privacy, consumer protection, and labor rights. You can ask them to provide evidence of their security and compliance measures, such as audits, reports, and certificates.

3 Communication and collaboration

A third criterion to evaluate is the communication and collaboration skills of the IT outsourcing partner. You want to work with a company that has a clear and transparent communication process, that keeps you informed and involved throughout the project, and that responds to your feedback and queries promptly and professionally. You also want to work with a company that has a collaborative culture, that values your input and ideas, and that respects your goals and expectations. You can assess their communication and collaboration skills by having a trial project, a consultation session, or a regular meeting.

4 Flexibility and scalability

A fourth criterion to weigh is the flexibility and scalability of the IT outsourcing partner. You want to work with a company that can adapt to your changing needs and demands, that can handle unexpected challenges and opportunities, and that can deliver customized solutions that fit your requirements. You also want to work with a company that can scale up or down their resources and services according to your project scope and budget. You can gauge their flexibility and scalability by asking them about their project management methodology, their change management process, and their availability and capacity.

5 Risk assessment and mitigation

A fifth criterion to examine is the risk assessment and mitigation capabilities of the IT outsourcing partner. You want to work with a company that can identify and analyze the potential risks that may affect your project, such as technical glitches, human errors, or external threats. You also want to work with a company that can implement and monitor effective risk mitigation strategies, such as backup plans, contingency funds, or insurance policies. You can review their risk assessment and mitigation plans, their risk management tools, and their risk reporting mechanisms.

6 Cost and value

A sixth criterion to compare is the cost and value of the IT outsourcing partner. You want to work with a company that offers competitive and transparent pricing, that does not have hidden fees or charges, and that provides a clear breakdown of the costs and benefits of their services. You also want to work with a company that delivers value for your money, that improves your efficiency and productivity, and that enhances your competitive advantage. You can calculate the cost and value of the IT outsourcing partner by using metrics such as return on investment, cost savings, and customer satisfaction.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?