27 Questions to Ask an Outsourcing Agency

Monday, September 2, 2024

Outsourcing can be a cost-effective way for you to manage a function of your organization in which you might lack expertise or prefer to rely on an expert for. It can also free up a chunk of your time that you can then refocus toward your mission.

However, outsourcing some of your organization’s functions to another business requires a strong relationship with effective communication and preparation. Taking the time to interview an outsourcing agency before you sign a contract will ensure that you’re making the best choice for your organization.

When you decide it’s time to outsource, compile a list of potential agencies that you’d be comfortable working with. Check service options, reviews, and price points to narrow down your options to a short list. Then, you’ll be ready to ask a number of questions to make your final decision about which outsourcing agency will be best for your organization.

In that spirit, here is a list of 27 outsourcing questions to help you interview a potential candidate.

What to ask about the company:

1. What makes your company different from other outsourcing options?

When you ask this question, you’ll have already down some research into other agencies. Take careful notes so that you understand the major differentiators between the agencies in your short-list.

For example, at Jitasa, what sets us apart is that we work exclusively with nonprofit organizations. While this is a helpful differentiator for nonprofits that need bookkeeping and accounting services, if a for-profit company came knocking, they’ll realize that our services are not as relevant for them.

2. How long have you been providing your services?

Asking how long services have been provided can give insight into the amount of experience the outsourcing company has. This is another great comparison point for different agencies. While it’s not foolproof, the longer someone has been in the space, the more experience they should theoretically have.

However, be sure to use this metric alongside other information such as the number of clients the company has, their retention rate, referrals, and reviews.

3. Do you have client testimonials?

Client testimonials are a great way to see not only what other organizations have said about the company, but also what other organizations that company has worked with. If you know of the organizations and especially if they’re similar to your organization, it’s a great sign that the company could be a viable option for you.

4. What percentage of clients would refer you?

This outsourcing company question forces some self-evaluation. Companies that claim 100% of their clients would refer them are likely not being honest with you or themselves. Every company knows that they are not the best fit for everyone and should own up to that. The answer to this question combined with references, testimonials, and your gut feeling should help you determine the satisfaction of the company’s client base.

5. What makes your services worth the investment?

Of course, you’ll be looking to determine this for yourself through questions about their services and price. But what better way to get an inkling towards the answer than asking the question right out? Every company you speak to will believe their services are worth the investment. Asking why can give you valuable insight into their values.

For example, Jitasa offers many services a la carte, meaning clients will only pay for those services that they need. This keeps costs low for organizations that are still getting set up, but provides growth opportunities for the future. It also means organizations don’t pay for more than they need.

6. What security measures do you have in place to protect your clients?

Security is, and should be, a top priority for your organization. Your information is sensitive and any outsourced company you work with should have policies in place to mitigate risks. Look for policies, certifications, and other reassurances that show the company will take your security seriously.

7. How will you meet the needs of my organization?

To answer this question for the outsourcing company, your organization will need to have clearly established and explained your needs. Pay attention to be sure they provide an answer that satisfies every need you have from an outsourcing agency.

Tip: When you take notes, leave an entire column available to write down the “bells and whistles.” These are the shiny features that they offer that don’t exactly meet your needs but could be nice to have. By organizing your notes this way, you won’t get distracted by the bells and whistles and make sure that having your needs met will remain your number one priority.

8. How often would I receive communication from you if I were a client?

As we mentioned, communication is a key factor in the business relationship between your organization and the outsourced company you choose to work with. Open and frequent communication should be ongoing from the time you finish onboarding to any termination of a contract. Hear their answers, then set expectations for how frequently you would like to hear from them.

9. How many individuals will work on my account?

This outsourcing question helps you gain some insight into the agency’s operations and how they’ll serve your needs. For example, will you have a single contact person to chat with? Will they be in a similar time zone to you?

Jitasa, for instance, offers around-the-clock service to clients through a global team. So, no matter what time it is, someone will be available to answer your finance questions.

10. What type of oversight will my account have?

Proper oversight helps the agency understand your account’s performance, ensures security measures, and helps catch any mistakes as soon as possible. Ask both about oversight policies and norms at the organization along with the communication of their findings to ensure you’re kept in the loop.

11. How long would it take your company to become familiar with my account? To completely take over my function?

This question for outsourcing companies gives some insight into the onboarding process. If you have a certain deadline to get your account up and running, it can help you determine if you’ll meet that deadline. For example, if tax season is approaching and taxes are one function you want the organization to take over, you should make sure they’ll have enough time to become familiar with your organization, prepare your taxes, and submit them. You’ll also gain an understanding of how long outsourced tasks will remain on your plate.

12. How often do your employees receive training?

Some outsourced professions require regular recertification or training to best understand changing demands in the industry. For instance, lawyers are required to recertify on a regular basis to maintain their credentials. Asking about training will help you determine if their staff members are up to date with changing standards in their respective industry.

13. How can I be sure you are up to date on nonprofit regulations and requirements?

Nonprofits like yours require specialized attention. Regulations, requirements, and even expectations are different than those from for-profit companies. Your best bet is to look for companies that work primarily (or exclusively) with nonprofit organizations. This ensures their team is motivated to stay updated with the latest nonprofit regulations and requirements.

14. How will problems with my account be addressed?

This question for outsourcing agencies should help you better understand the communication standards with the company. If they run into a problem, you should know how they’ll reach you and in what timeframe. Or, if you run into a question, you should best understand how to best reach their team. You should gain some idea as to the amount of urgency their team will dedicate to any issues on your account.

15. If your company makes a mistake, how will that be dealt with? Will I be notified immediately?

You deserve transparency from your outsourcing agency and their response to this question should leave you feeling reassured that this transparency is top-of-mind for their team as well. No matter what the outsourcing agency is, if they run into a mistake, you should be notified immediately, and they should provide clear next steps as to how they’ll rectify that mistake.

16. What if my needs change?

Changing needs are more frequent in some industries than others and depend on your organization’s plans. For example, organizations in a major growth period might want to expand their outsourced marketing services over time, ensuring they keep up with the nonprofit’s growing audience. Or you may find unexpected growth opportunity when you’ve outsourced financial needs because you’re able to dedicate time back to your mission. This may lead to additional services you want covered by the outsourced agency.

Make sure you understand the conditions under which you can expand or reduce your contracted services with an agency before signing a contract.

17. Will I be reimbursed if you are responsible for an error?

Depending on the agency and the error, this reimbursement may take different forms. Organizations that bill based on time may offer to fix the error without charging for the time spent remedying it. Meanwhile others with a flat fee may offer some reimbursement for the service provided if an error occurred on their account.

18. Who can I contact to provide feedback on my experiences?

Hopefully, by conducting a thorough vetting process to pick an outsourced agency, you’ll find the one that’s perfect for your needs and you’ll want to provide only positive feedback. However, there’s always a chance the outsourced agency could use some constructive feedback regarding how to better meet your needs.

Either way, you should know how to communicate with the company how they’re meeting your needs or about how they could better serve your organization.

What to ask about YOUR role:

19. What would my obligations as your client be?

Gain an understanding of what will be expected of you in your relationship with this new outsourcing company. Will their services truly save you time? Ask about both the onboarding process and the ongoing tasks you’ll take on throughout the duration of the relationship. Then, consider the time commitment for each of these. Onboarding will be a temporary time commitment, but you should know about how long that process will take before the agency will be able to operate mostly independently.

20. How much time would I need to devote to working with your employees?

This outsourcing question goes hand-in-hand with the previous one. Ask the question, then consider both their answers and your own thoughts. You’ll know better than the agency does how long it takes to accomplish certain tasks.

For example, if you’re a photographer and well-versed in photoshop, it’ll be no problem sending photos to your outsourced marketing team. However, it could take a photography novice a little more time and effort to do so. And if the outsourced agency doesn’t know about your photography prowess, they may estimate more time will be dedicated to the activity than actually required.

21. Would I have deadlines to meet?

Write these deadlines down up front so that you know what’s expected of you throughout the relationship. Your job will be easing the tasks of the outsourced agency. After all, when their job is easy so is yours, so it’s a win-win!

Tip: After the onboarding process, set up calendar reminders for deadlines on recurring tasks. This will help ensure they don’t fall to the wayside by mistake.

22. Will I still have access to my records?

There are very few industries you can outsource to where records aren’t important. Ask ahead of time to ensure you’ll have access to all records and that you know where to find them when you need them.

What to ask about contract obligations:

23. Will I be required to sign a contract?

Have you heard the joke after someone signs a contract saying they’ve just “signed their life away?” It’s not true. Contracts are important and can be used to your advantage. They can help secure the pricing you’re looking for and define exactly how you can operate within a business relationship, providing security for your organization along with the agency.

The important thing is to carefully read the contract, ensuring it includes everything you need. Consult a lawyer, suggest revisions, and make sure the contract is something you’re on board with before signing.

24. What is the minimum duration of the contract?

If you’re working with a new outsourcing agency, you might consider a shorter contract to ensure that you’re happy working with them before entering into a longer agreement. Jitasa doesn’t provide legal advice, so always consult a lawyer before making decisions regarding contracts.

25. Will I be charged for canceling early? At the end of my contract?

We hope that every organization will work with the perfect agency that meets their every need on the first go-round. Sometimes, though, that’s not the case. To protect yourself, you should make sure you understand the requirements and necessary steps to take to terminate the contract if necessary.

26. What services are not covered under my contract?

Companies generally understand that they can’t provide everything your organization needs. In fact, if they tried, they’d probably spread themselves too thin and be unable to provide quality service. That’s why outsourcing agencies stick to specific services in which they specialize.

Asking what services aren’t covered by the contract can help show you what services will remain on your plate or those that you might consider outsourcing to another agency.

27. Will I be made aware if a service I desire comes at an extra fee?

This is an important way to make sure your organization’s wallet stays in check! Let’s just say you’re outsourcing your social media marketing, and you want to do a one-off blog article for your website. You should understand whether a blog article is included in your contracted services or whether your monthly fee will be higher than usual due to the one-off activity.

Asking about fees may be uncomfortable for some, but it’s a key aspect of budgeting for your organization. Be sure you’ll be notified if anything changes in regard to your organization’s payment.

Wrapping Up

Investing in an outsourcing agency is a big deal. You’re putting valuable organizational tasks and information into the hands of someone else. Therefore, you should conduct thorough research before signing any contracts or taking on an agency. Ask questions, take notes, and be sure whatever organization you choose will fully live up to your expectations. After all, your nonprofit provides the best service, so you deserve the best service from your vendors.

If you’re interested in outsourcing your bookkeeping and accounting needs, please don’t hesitate to contact us at Jitasa. We’re here to provide you with top-quality service that meets your financial needs and frees up your time for what matters most: your mission.

Jitasa’s bookkeeping and accounting services are affordable and cater to every nonprofit.

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