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Consider Contractor Location When Outsourcing
September 29, 2011 -
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When selecting outsourced service providers, there is a whole range of choice and parameters by which to make the decision, such as evaluating the contractor's skill set, safety record, experience in the field, financial stability, and references. Of course cost is also near the top of the pile.
But maybe one criteria facility managers haven't thought about too much is the contractor's presence in the local geographic area. If the service provider has no presence in the nearby area, if your project suddenly needs additional personnel, there may be none available to serve your needs.
For companies with a global reach, a strategy can be to set up global service contracts. Or a national service contracts. These types of contracts usually lead to lower service prices and there's plenty of backup available.
The drawback can be a lower level of local service if the provider doesn't have resources near all of the organization's facilities, so it's still a balancing act.