Business research firm Gartner identifies six signposts to watch for in screening and selecting their business process outsourcing partners/providers near-shore or off-shore.

Like any business entity, service providers are aslo exposed to the economic crisis,  many will struggle to survive. Some companies may  be acquired and others might exit the BPO services market completely to be replaced by new players.

The 6 signs that a certain service provider are high-risk, according to Gartner are:

  1. Laden with chronically unprofitable BPO deals
  2. Sustained inability to win new business or drive growth and/or profitability.
  3. Loss of established BPO deals to competitors
  4. High exposure to the banking and finance sector
  5. Adverse to risk; heavy leverage
  6. Still invested in the lift-and-shift approach

It is essential as well as prudent to perform due diligence on potential service providers or partners, acquire references from any of their current clients to understand how committed their client-provider relationship are and their experiences in dealing with business challenges.

Gartner also reminds that that clients should have exit strategies and contingencies for contract termination built into the service contracts before signing . Since transitions and termination processes are quite costly, it is important to understand contractual issue escalation procedures to ensure that all rational options are exhausted before initiating legal and/or termination discussions.


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  1. “25% of top BPO providers will vanquish in 3 years: Gartner.” 30 September 2009. Economic Times of India. Accessed 8 October 2009. Link Here
  2. “BPOs may face survival test.” 1 October 2009. Economic Times of India. Accessed 8 October 2009. Link Here


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