As an outsourcing partner ourselves, we view risk mitigation as a two-way street. We understand that you need to ensure we protect your data and brand while providing high-quality services. However, as a vendor, we know that going through the due diligence process ensures a long-lasting partnership.
We’ve outlined a few practices below that we’ve encountered before that we believe will help you ensure you feel confident and comfortable in any vendor partnership.
Due Diligence
Conduct thorough research into the outsourcing company's reputation, including reviews and case studies. A good vendor will not only list these on their website but also have customer references available.
Inquire about their ESG strategy and perform audits if possible. We are particularly passionate about ESG due diligence and encourage you to investigate working conditions for any outsourcing company.
Cultural and Operational Alignment
Ensure that the outsourcing company’s work culture, processes, and time zone align with yours to minimize friction. While outsourcing implies that work may be done in a different time zone, does the company have account managers available in your time zone?
Hold training sessions if needed to align the outsourcing team with your brand, quality expectations, and style guides.
Operational Security
Understand your outsourcing vendor's locations and operational risks. Internet access, natural disasters, and political unrest can affect many common outsourcing locations. Are there plans in place in case any of the above occurs? Mitigation strategies can include working with vendors in multiple regions to diversify risks, ensuring they have robust business continuity plans, and including clauses in contracts to address these scenarios.
Clear Contract Terms
Define detailed service level agreements (SLAs) and key performance indicators (KPIs) to set clear standards on quality, timelines, and deliverables. Are there measures in place if deadlines or standards are not met?
Effective Communication
The vendor you choose to work with should already have internal standards for regular check-ins. If not, inquire about scheduling regular meetings to review progress and quality. These meetings can also be used to discuss forecasts and future projects. If your vendor doesn’t have a platform or sends regular updates, consider using a project management tool to track progress and identify issues early.
Confidentiality and Data Security
Ensure that the outsourcing company adheres to strong data security standards (e.g., ISO 27001 or SOC 2 compliance). To help you navigate acronym-heavy compliance, we’ve created a list of 20 questions to ask your vendors to get straight to the most important and common standards in our industry.
Confidentiality and non-disclosure agreements should be included to protect sensitive information. This should be standard with any vendor you work with for e-commerce content.
Time spent upfront on due diligence can play a major role in mitigating risk to your data, finances, and assets.