We’re currently testing and selecting some outsourcing partners for startupSQUARE and outsourcing is an issue that seems inescapable these days. Invariably, there is going to be at least one part of your business that is a non-core competency and it’s tempting to send the task off to someone else who is asking less than half the cost of hiring a local. Having managed a small off-shoring division of an IT security company in Vietnam, I’ve come up with my favorite three questions for outsourcing partners.
What is your employee turnover rate?
This is a very important indicator of the quality of the workforce. If there’s a 25% turnover rate of employees, it means that the majority of the senior staff spends a large hunk of their time training staff and not actually doing work on your project. Continue reading