EVALUATING OUTSOURCE PARTNERS We understand to ensure success in an outsource relationship; it is important to carry out evaluation of any potential service provider independent of the services you are seeking. The following criteria should be mandatory during the evaluation process: Methods. Does the vendor employ methods for performing the business process in question that meets or exceed industry standards, and that are consistent with your business requirements? Management. Does the vendor have in place a management team that is capable of delivering the agreed-upon service, while meeting any contingency that may arise in its own business environment? Business Domain Knowledge. Does the vendor have experience with your industry and with business requirements similar to your own? Can the vendor bring to bear experience that may apply to devise improved solutions for you? Define a vendor short list. Evaluate vendor responses to your RFP against defined criteria to eliminate those vendors with the lesser likelihood of providing your optimal solution. Tools and Technology. Does the vendor have in place the technology environment to support world-class service delivery? Does it have a strategy for maintaining state of the art technology and the updated skills to operate it? Financial Viability. Is the vendor financially stable? Is there a reasonable assurance that the vendor will be around to fulfill the terms of your service agreement? Pricing, Terms, Incentives and Warranty. Are the vendor's pricing and terms competitive? Do they provide a satisfactory cost/benefit business case for your firm? Is the vendor willing to negotiate incentives and penalties based on performance? Is the vendor's work warranted?

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