Top five tips for choosing an outsourcing provider

To be competitive in today’s economy, more and more Canadian business owners are realizing they need to stay focused on strategic growth and building core products and services, not administrative tasks like payroll. Instead of hiring additional staff, who often end up idle at times and can significantly add to overhead costs, entrepreneurs are increasingly outsourcing administrative red tape which can be surprisingly affordable.

  • Oct. 22, 2008 7:00 a.m.

(NC) – To be competitive in today’s economy, more and more Canadian business owners are realizing they need to stay focused on strategic growth and building core products and services, not administrative tasks like payroll. Instead of hiring additional staff, who often end up idle at times and can significantly add to overhead costs, entrepreneurs are increasingly outsourcing administrative red tape which can be surprisingly affordable.

Choosing the right outsourcing provider is the critical first step in freeing your time to focus on more strategic tasks; but it’s not always easy to find that perfect fit. ADP Canada, a leading business administrative services provider, offers five steps to help you find the right company to alleviate your administrative headaches:

1. Do your homework. Ask for references and, by all means, check them. Ensure the provider has tangible experience in your specific field and a proven track record in the industry. Examine the number, type and longevity of its client relationships.

2. One voice keeps it simple. Communication is key – especially when a third party is handling some of your responsibilities. Give your outsourcing provider one main day-to-day contact, who is involved in the appropriate business functions, such as HR and payroll, but also senior enough to make strategic and budgetary decisions.

3. Be sure it’s in the contract. Clearly state each party’s responsibilities to limit confusion and conflict. The contract should outline specific conditions, but also be flexible enough to adapt to change.

4. Be honest and thorough. Keep your outsourcing provider informed on developments in your payroll and HR department to ensure they understand your business and can recommend the correct mix of products and services.

5. Plan together and plan ahead. Working hand-in-hand from the start will ensure your working relationship gets off on the right foot, generating better results. Look three to five years ahead in your business plan and choose an outsourcing provider who can grow and change with you.