Vendor selection process is very important any business operation. Choosing a perfect outsourcing vendor is one of the vital decisions that can be made by any organization. The process is not as easy as hiring a nearby vendor or the one offering low cost services. It is all about fulfilling all the vendor selection conditions and process by the ideal vendor.

While outsourcing any service, A lot of businesses go for the cheapest service provider without giving much consideration to other criteria, while outsourcing any of their services. Evaluating a particular vendor from all areas will guarantee a successful vendor selection.

Here are the steps you need to take for choosing a perfect outsourcing vendor for organization.

1. Business Requirements Examination

Careful examination and analyzing your business requirements is the initial and imperative of the steps involved in outsourcing vendor selection process. As a business owner, you should be very clear about the services you want to outsource to a third-party. You can forge ahead with your search once you have established this fact.

2. Conduct Research for Vendor Research

The team you have vested with the duty of selecting the outsourcing vendor can start vendor research by listing all the possible organizations and ventures meet all your business requirements as listed and analyzed. The team can further reduce the number of selected vendors or companies after a scrupulous background check.

3. RFP and RFQ

Once you have got the list of capable of vendors for the required assignment, your team can then ask for a RFP, which is the abbreviation for Request for Proposal or RFQ, which is the short form for Request for Quotation. This particular request should have information such as a preface, synopsis of the requirements, a short background of the business, specifications, and the essential terms and conditions

4. Choosing of Vendor

Before selecting a vendor, make sure you analyze all the proposals you collected from different vendors carefully. In addition, thoroughly examine the actual nature of the service to be provided for the price quoted. Then weigh each of the requirements being considered, based on their importance.

Make sure you check the price quoted critically. Select the best proposal which best suits your business requirements and have a reasonable cost.

5. Contract to Hire

Drafting the contract is the final step after choosing the outsourcing vendor. You need to plan the contract negotiation strategy in such a way that it will properly sort out the priorities of the required services in order to prevent future complications.

In addition, there must be thorough examination of an assortment of risks and liabilities involved in signing a contract. You can go ahead and sign the contract for hire, once the suggested changes suggested, if any, are included in the final draft.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.