6 tips when selecting outsourcing agency

Selecting an outsourcing agency requires numerous checks before beginning cooperation. It is essential that research is done before any hotel chooses to outsource any of its hotel operations. The following are 6 tips when selecting outsourcing vendors.

Quality

“The particular firm and the individual team and the qualifications of the team cannot be overstated, far more than the fee,” The most important thing to ask is what you’re getting for that fee?

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In this environment, companies are dropping fees and looking for the lowest cost, but the lowest price in the world for the wrong product is not a win for the hotel. In fact, this may end of costing you more in the long run.

Financial Stability

Checking the financial stability of any company is paramount. More importantly, are they paying their employees on-time? Unpaid employees can be detrimental to quality of service.

Insurance, policy regarding documentation of workers

Legality…does the company follow legal hiring practices? Although the risk of incompliance does not lay with the hotel, the government coming in and doing an audit can quickly close down any non-compliant companies.

Experience

Does the company have the type of experience the hotel needs? For example a 1.000 room convention hotel is vastly different than a 40-room boutique hotel.

References, reputation and professionalism

The above are key to hiring the right outsourcing company. How does reporting work, who reports to who, who are you working with?

Be sure to try and get it right the first time. True there will always be risk, but having to bring services back in house can be devastating to business.

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Maintain a degree of control. Regular performance reporting should happily be provided by the agency, proving they are performing at or above the agreed service level agreement. If not maintained, take positive and decisive action. Outsourcing at a loss financially, or decrease in customer service, is simply bad business. If you’re already outsourcing to save money, don’t double the problem.

That being said do remember that business professionalism is needed. The outsourcing agency should be part of the team. The relationship should be more of the following: no blaming or finding fault (taking responsibility is better), identifying, and then fixing the problem together. One only succeeds if the team succeeds.

Next time we’ll be discussing how best to start off the new relationship with your vendor.

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