What are the most effective ways to evaluate third-party service providers?

One important element I have found over the years, typically overlooked, is the cancellation or early termination terms of your current agreement. Many decisions by leaders are based on what they previously knew, but they have not looked at these agreements in years. Without first understanding your exit criteria, potential penalties, or timelines for written notice, you may find yourself wasting time and energy on defining your criteria for a new a provider conversion effort at an inopportune time for yourself and your new service provider.

Outros pontos importantes e nao colocados sao custo e retorno do servi?o, nao adianta contratar o melhor fornecedor se o retorno financeiro que vou ganhar nao é suficiente nem para pagar o seu servi?o. A rela??o custo x beneficio nao pode ser ignorada, e sim, sempre tem um fornecedor que vai entregar o que voce precisa com o custo que voce pode pagar.

One approach many organizations find useful in their due diligence effort is to evaluate the depth and breadth of the due diligence their list of potential providers is doing on them. Ask yourself: how far have they gone to understand our challenges; what solutions have they put forth to solve them; is their level of effort equal or greater than ours in understanding the 'fit'; are they demonstrating the level of communication and engagement in the sales process we would expect in a long-term relationship.

In the due diligence one important thing to consider is supplier’s information security. External information security certification or security auditor’s report is most cost-effective way to inspect their performance. When using this method, please check the scope of the external report or certificate, against the scope of services you would be purchasing. As well, the validity of the paper. With auditor’s reports, there could be deviations, and for those you would need to check the corrective actions by the vendor. Keeping in mind that your own supplier requirements could go beyond the external certification or auditor’s report.

Monthly check-ins are incredibly important and, in my experience, open and transparent feedback is the key to insuring you receive the service experience and value for the investment you are making. Issues need to be documented, and monitored, through resolution with a clear understanding of the root cause with action and improvement to prevent it from recurring.

Above and beyond all the tactical (how they solve your direct problem...and affordability of the offerings), I find the long lasting partnerships are created via personal relationships. Who can you trust? Who can you call to solve problems quickly? Who has a better appreciation for the company goals? Who has a better appreciation for your personal goals?