Tips for Successfully Outsourcing Services to Freelancers or Outsourcing Service Providers

Small businesses and entrepreneurs always benefit byapart from price into consideration.
outsourcing their services to professional service6. Choose a Service Provider
providers or freelancers as this saves them time andFinally, compare the competitive bids to make the right
money. The money saved due to outsourcing can bedecision.
effectively and successfully utilized to focus more onWhat next after you have chosen a Service Provider
strategic and core business functions.1. Service-Level Agreement
This article will help small businesses and entrepreneursIt's good practice to get everything in writing from the
in making the right decision in choosing the correctservice provider, who will provide the agreement and
service provider for them and managing their projects.project plan. The agreement must have the project
Tips for Finding and Choosing the Right Freelancer orplan attached which outlines a project's scope,
Service Provider for your Servicesdeliverables, timeline, and payment terms. This will help
1. Where to find a Service Providerin avoiding disputes during the project. You should also
You can find service providers or freelancers throughask the service provider to give you a list of
online outsourcing marketplaces. All you need to do isdeliverables/milestones with tentative dates of
submit your requirements. Service providers whosecompletion.
skills match your criteria will submit bids/proposals.Ownership of work must be stated and included in the
Alternatively, you can search for providers throughagreement.
search engines and directories - this step is more time2. Releasing Payment
consuming.Service providers always demand advance payment.
2. Confidentiality AgreementThis should be 20-30 percent. The rest of the
If your requirements contain some confidentialpayment should be dependent on agreed deliverables.
information, then do not give all the requirements to theOnly release payment when a deliverable/milestone is
service providers. You can give them a shortmet.
description of your requirements and ask them to signTips on Managing your Project
a Non-Disclosure Agreement (NDA) before you1.When a project starts, introduce yourself or your
provide them all the information.team members to the development team. Specify
3. Provide clear Scope, Schedule, and Deliverablesmeeting, reporting, and feedback timings.
Clearly define the scope, schedule, and deliverables for2.Project scope, deliverables, and price can change
your project. It is recommended that you give serviceduring the course of a project: it is highly
providers as much information as you can in order torecommended that all these changes be agreed upon,
allow them to submit realistic proposals withdocumented, and signed by both the service provider
reasonablerates.and you.
4. Evaluate Proposals3.If your service provider is located offshore, the
Evaluate service providers' proposals against yourgreatest challenges of successfully managing offshore
evaluation criteria. An evaluation criterion is a measureprojects are overcoming differences of language,
that you will use to evaluate proposals, e.g., experienceculture, and geography. All the processes must be well
in similar projects, approach and methodology, price,documented to avoid any confusion. These processes
etc. Always find the key differentiators between allmay include: resolution of problems, reports, feedback,
competitive proposals. Feel free to ask them anydiscussion timings, etc.
questions to learn more about them. One of the4.Depending on your flexibility, ask the service provider
important questions can be about what kind of supportto submit daily or weekly progress reports to see the
will be available during and after the project is finished.actual performance in comparison to the plan initially
5. Review Portfolios/Sample Work and Feedbacksubmitted.
from Previous Clients5.Make sure the service provider understands how
Short-list the service providers whose proposalsyou intend to use the deliverables that they are
satisfy your evaluation criteria (cost, approach, etc).agreeing to provide. It must be clear about who owns
Check their references and get feedback from theirthe final work.
clients. View their samples and completed projects or6.Save all information from the chats, emails,
portfolios to understand their quality standards andmessages and discussions between you and your
work capability. Do not choose a service providerservice provider. It may be helpful in resolving disputes.
based solely on price: you need to take overall quality