Considerations when choosing an outsourced IT provider/adviser

Who are you really dealing with?

Make sure you satisfy yourself on these points …

• How long have they been in business? Remember that a majority of new businesses fail within the first 3 years, so take this into account.
• Is the provider a Limited Company? If not, why not?
• If they are a Limited Company, who are the directors? Are the directors actually working in the business or are they just names for the company records?
• Likewise, who are the shareholders? Does the person heading up the business to the outside world have a financial stake in the business? If not, why not?
• What is the financial status of the business? Do a credit check using Experian or CreditSafe (or any number of other such sites) and see how they rate. Unless the credit score is at least 81 (out of 100) and categorised as “Low Risk”, best to avoid.
• When were the company accounts last submitted to Companies House? Was that done on time?
• What about insurance? Assuming they do have insurance (mandatory for a limited company), do they have Professional Indemnity cover? Find out and check the level of cover. Do they have Cyber Insurance cover? An IT provider should be well covered in this respect – not just a tick box on a general business insurance policy.
• Check out where the business is actually based. Does the business operate from the listed trading address? If not, why not? (Update Oct 2020: this point is obviously of reduced significance since the coronavirus pandemic forced many companies to work remotely. But still worth asking).
• Does the provider have permanent employees or just use freelancers/contractors to deliver the service? If so, think about whether or how are you going to get continuity of service?
• How does the business screen its new recruits? Are they externally vetted to ensure they are who they are and that there is nothing dubious from their past?
• Does the business invest in its people? Are the technical employees trained and do they have certifications from the likes of CompTIA, Microsoft and Apple?
• Have you spoken with clients or former clients of the provider/adviser and taken their views into account?
• If you're hiring an independent adviser to help you or provide the interface between you and the provider, find out why he/she left their previous employment. There are many people around who have 'left under a cloud' from former employers, so do you really want them advising you?

In short, do some basic due diligence and avoid any possible pitfalls associated with making the ‘wrong’ decision.

For more on this subject, please see The Ultimate Guide to Choosing the Right Business Technology Partner.