There are many benefits to outsourcing work, from increased efficiency to cost advantages, it seems a no-brainer to take advantage of another’s skillset when the time is right for your business.
But, if you fail to do the due diligence when outsourcing and something goes wrong, it may cripple your business.
As a responsible businessperson, if you fail to conduct the reasonable steps to avoid a tort or offence within your company and they do arise, you’re at fault.
That’s why we’ve listed some considerations to support you with ensuring you carry out the due diligence and protect the reputation of your business when outsourcing.
- Do both sides of the agreement hold the same expectations?
Mismatched expectations can create countless obstacles in business. One way to avoid this from happening is to ensure everything is written down on paper, then agreed and understood by everyone involved with the outsourced work.
- Have a contract agreed.
Similar to the expectations have a contract which states what work will be carried out, completed by when and by who, as well as a clear price too. A contract has the power to be a simple reference for a solution to any conflict.
- What’s the reputation of the business you are outsourcing work to?
Seems obvious, right? But companies do fail to do their research regarding the reputation of someone who is completing work for them.
If the service someone provides isn’t recommended, why would you use them to support your company? You wouldn’t.
- Do they know their health and safety?
If an outsourced service poses a health and safety risk to your workforce and you don’t mitigate it, then if an accident takes place the responsibility falls on your shoulders.
- Is the company you’re outsourcing to savvy with data protection?
GDPR – you’ve heard it before and will continue to hear all about it into the future. Why? Because peoples’ personal data matters.
If you’re outsourcing work to someone required to deal with data within your business (making them the processor), for example, the personal details of your clients, then you as the controller are responsible for how the outsourced work is handled. You also need a written contract covering data processing.
- Are those claiming to be an expert actually an expert?
If you’re looking to outsource an element of your business, such as HR, then is the person claiming to have the ability to complete the work actually competent in it?
For further details on how to avoid having a negative impact on your business for when you outsource work, get in touch with Crimson Crab.