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1. Cultural fit.

“If you’re a well-established company with a brand to protect, you might have a more difficult time working with an organization that’s much more aggressive and active. You could find yourself in a cultural clash,” says Clifford. “Just because you move a function outside your four walls doesn't mean you don’t have anything to do with it anymore. You’re going to be working with this partner very, very closely for the duration of the contract. Like any marriage, you've got to make sure it’s a good fit from a philosophical and cultural standpoint.”
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2. Focus on value, not on price.

“When you collect your RFPs, many folks seem to go right at the price,” says Clifford. “That can often be very misleading because you have to take all the other components of value into consideration – accuracy of transactions, quality, compliance, contemporary technology.”
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3. Breadth of services.

“If the party you’re talking to says, ‘We can help you do all this,’ ask the question, ‘Are you going to help me transition?’” advises Clifford. “If they don’t have people who can help you do that, that’s a red flag. It doesn't necessarily mean you shouldn't use that firm, but it’s one of the components in transitioning to an outside provider that there is this change management process that is essential to making this successful.”
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4. References.

“You want to make sure you talk to other companies that have used the providers you’re considering,” says Clifford. “This isn't that hard to do. Sometimes people ask the providers for list of references. The HR community is pretty tight knit so you can pick up the phone and can usually find people in your network who've worked with the providers you’re considering.”
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5. Contract terms.

“Make sure you get contract terms from the finalists you’re considering. Many times the contract terms will give you an indication of what that particular provider is stepping up for and what kinds of service levels and guarantees they’re willing to provide,” says Clifford. “You can learn from different contracts from different parties things you think are important to have in your final contract.”
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