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10 Questions to Answer Before Turning to a Third-party Vendor

January 1, 1998
Related Topics: Outsourcing, Featured Article
Tips to prevent an outsourcing disaster.

  1. Do you know what the outsourcing strategy is and how it fits into the big picture for human resources?
  2. Do you know what the desired outcomes are?
  3. Do you know how to measure the success of outsourcing the function or project?
  4. Given the current staff and workload, can the outsource supplier do a better job than could be done in house?
  5. Does the outsource supplier have better resources (technology, knowledge, expertise and so on) than your company has internally?
  6. Can the outsource supplier do this activity faster, saving the organization time? Does it free the HR staff to work on more important activities?
  7. Is it a cost-effective decision? (For example: Are you reducing the time-to-fill on open jobs, reducing turnover or saving on recruiting costs?)
  8. Can you integrate the services provided by the outsourcing provider with our current services?
  9. Will your internal staff receive a higher level of service as a result of the outsourcing decision?
  10. Does the outsourcing decision conflict in any way with your efforts to provide high-performance HR systems?

Workforce, January 1998, Vol. 77, No. 1, p. 42.

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