10 Red Flags to Avoid When Looking for an Outsourcing Provider

Partnering with a high-performing outsourcing provider can have valuable benefits for your healthcare business. It can help improve productivity, which results in an increased return on investment. It can also streamline your processes, improving efficiency while saving costs.

With the right outsource partner, you can make the most out of your outsourcing efforts. But first, it’s crucial to be aware of the red flags in partnering with a third-party healthcare service provider so you can avoid making the wrong choice.

This post will discuss some outsourcing red flags you should look out for when choosing a healthcare outsource service provider to work with and how you can spot them.

Red Flags to Avoid When Looking for a Healthcare Outsourcing Provider

1. High Attrition Rate

A high employee turnover rate is an indication that there are fluctuations in the quality of a company’s services. It usually implies poor work policies and constant labor conflicts, which can pose a threat to your business.

It’s always best to work with outsourcing companies that value connections with their employees because it means they prioritize relationships, be it between the management and the workers or between the firm and the customers.

2. Poor Financial Health

Verifying the financial standing of your potential outsourcing partner is an important step to take before closing the deal. Check the company’s balance sheet and current assets and liabilities to ascertain its financial standing. A firm with monetary problems can spell liability for your business.

3. Misaligned Values

A shared vision matters in a business partnership. It’s essential that you and your outsource service provider work toward the same goals and mutually agree on how to achieve them. If you have differing perspectives on, say, the way you approach strategy and financing, issues may arise that can get in the way of your objectives getting accomplished.

4. Thin Portfolio

It’s understandable when a new company doesn’t have a long list of clients. But if the outsourcing firm you’re considering is established, it should have a portfolio of its successes and customers.

A comprehensive client list may not be on your outsource partner’s website, but it should be available if you ask. Try to check if the customers it claims to work with are still affiliated with your target provider; otherwise, this is a huge red flag.

5. Conflicting Culture and Values

A high-performing outsourcing company should practice what it preaches. If it claims to be an “expert,” a “guru” (often a red flag in itself), or simply a pro, its processes and results should reflect that. For instance, if a provider claims to be an industry-leading firm but does not have the necessary licenses and professional certifications, it’s a sign of an untrustworthy outsource partner.

6. Weak Tech Infrastructure

Infrastructure is an essential consideration when deciding to outsource. If your healthcare outsourcing provider doesn’t have the tools and technologies for your project, how will it get the job done? This is a red flag you should watch out for.

Use a checklist: Do they have an office with up-to-date IT systems and equipment that can handle the most rigorous outsourcing functions? Do they have the resources and updated technology for seamless handling of your business needs? If the answers to these questions are negative, then it’s a sign the outsource service provider is not capable of delivering standard, if not the best, results.

7. Poor Data Security Practices

A reputable healthcare outsourcing firm is usually a certified provider capable of handling medical records following recognized regulations, such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the Data Privacy Act (DPA). If your third-party outsource company is not compliant with any of these laws, it means its encryption methods do not measure up to the standards of healthcare data entry services and it has poor data security protocol.

Check too if your outsource service provider has an ISO 9001 certification, as this is definite proof of a quality management system. If its data processing integrity falls below the standard requirements, you’re potentially exposing your information to breach.

8. One Solution for All Clients

If the outsourcing company you plan to work with gives you the same solutions it offers to other clients, it’s a sign you should move on and look for another provider.

Business needs are different from each other and hence should be offered customized approaches. Giving a single solution for all types of issues means the outsource service firm is desperate for work and more interested in getting paid than producing the results you want.

9. Offering Estimates Right Away

Top healthcare outsourcing companies know that they first need to thoroughly assess the client’s requirements before they can charge upfront costs. If your potential outsource partner offers an estimate without getting initial information, this might be a red flag. Either the firm doesn’t practice industry standards or doesn’t have a process in place, which is something a reputable provider should have.

10. No In-Depth Questions

The ideal outsourcing provider takes the time to evaluate your business requirements, getting down to the bottom of your problem. If your partner doesn’t make an effort to understand your concern, it’s highly unlikely they can address your needs precisely.

The opposite is a “green flag” – the more questions they ask, the better, as this is a good sign they don’t want to leave any stone unturned in ensuring they can accomplish your goals.

Stay Away from the Bad Apples

Finding the right healthcare outsource service provider is trial and error. However, knowing some red flags can guide you in spotting the industry’s bad apples, helping you avoid mistakes that could negatively impact your business.

With Infinit-O, your business can achieve operational excellence with our team of high-performing healthcare support service providers specifically formed for your unique needs. With increased overall productivity and efficiency, you can save on costs up to 70%.

Headquartered in the Philippines, Infinit-O is ISO-certified (ISO 27001 and 9001) and is compliant with the GDPR, HIPAA, and DPA 2012. It has a >97% client retention rate and 71 Net Promoter Score (2023), which means our customers have a sense of security and peace of mind when availing of our services. It also indicates they are highly satisfied with the results they get by working with us.

Start small. Exceed expectations. Think infinitely. Think Infinit-O.