As with any kind of relationship, an outsourcing relationship requires both parties to work together and deliver on expectations. It is important to build and maintain a partnership based on mutual trust, communicating and understanding each other’s organizational vision, business models, outsourcing plans, and goals.

As with any kind of relationship, an outsourcing relationship requires both parties to work together and deliver on expectations. It is important to build and maintain a partnership based on mutual trust, communicating and understanding each other’s organizational vision, business models, outsourcing plans, and goals.

Outsourcing is fundamentally a people-centric business strategy— rather than a process-centric business transaction— with its critical success factors leaning heavily towards the capability, commitment and attitude of the people involved. In the previous article, Success Factors for Outsourcing Part 3, the fifth and sixth factors have already been discussed: (a) building the best teams, and (b) establishing collaborative communication. With these best-practices, the company ensures successful transition and can then shift focus unto managing the outsourcing relationship.

Success Factor # 7 Manage the Relationship

As with any kind of relationship, an outsourcing relationship requires both parties to work together and deliver on expectations. It is important to build and maintain a partnership based on mutual trust, communicating and understanding each other’s organizational vision, business models, outsourcing plans, and goals.

In addition, regularly true up with your external outsourcing partner to evaluate delivery performance, and anticipate any changes, scope creep, additional costs, and any potential bumps in the road.

Related Article: The Outsourcing Partnership — Driving Long-term Success

Success Factor #8 Drive Value

Where in the past the main driver behind a company’s decision to outsource is the obvious cost advantages, the recent outsourcing trends actually now point to other advantages of outsourcing that are just as important, if not more, than the cost optimization opportunities.  Presently, outsourcing services that drive value are looking more attractive to clients, demanding “a return to value” from their external outsourcing partners or potential vendor.

To drive value in your outsourcing relationship, focus on quality throughout the entire process from the planning stages down to the ongoing management of the outsourcing initiative. During the ongoing management process, communicate regularly with your external outsourcing partner to measure achievement of goals, verify quality and delivery of output, and consider opportunities for growth and improvement.

Related Article: Extending the Business Value of Outsourcing

Sources:

Linda R. Dominguez. The Manager’s Step-By-Step Guide to Outsourcing. McGraw-Hill Companies. 2006.

IT Business Edge. Six Key Success Factors for Outsourcing. Allied Digital Services. 2010.

 

Casey Answers to Outsourcing Questions!

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Building the best teams is already halfway down the road to success for your outsourcing venture. Being a people-centric business strategy, your outsourcing initiative will require people that are collaborative, knowledgeable, flexible, and most importantly, committed to the outsourcing decision and the goals you have set.

Building the best teams is already halfway down the road to success for your outsourcing venture. Being a people-centric business strategy, your outsourcing initiative will require people that are collaborative, knowledgeable, flexible, and most importantly, committed to the outsourcing decision and the goals you have set.

In a 2009 report done by Outsourcing Center, buyers of outsourced services deemed successful all agree that “the transition phase was the point that either threatened to derail their relationship or allowed for long-term success”. The report went on to outline best-practice tips for a successful outsourcing transition. In the previous article, Success Factors for Outsourcing Part 2, the third and fourth factors have already been discussed: (a) building internal support and commitment, and (b) selecting the best-suited external partner. Moving on to the transition phase, the following are success factors associated in the transition phase of the outsourcing initiative.

Success Factor #5 Build the Best Teams

Building the best teams is already halfway down the road to success for your outsourcing venture. Being a people-centric business strategy, your outsourcing initiative will require people that are collaborative, knowledgeable, flexible, and most importantly, committed to the outsourcing decision and the goals you have set. Select the best team members for their technical, behavioral, leadership and management skills. Your teams must be fully capable of working through and responding to challenges that could occur especially those connected to the cultural elements of the transition phase. Furthermore, to ensure success, your teams must not only have the best members, but also the best tools and skill sets, as well as support from stakeholders.

Success Factor #6 Establish Collaborative Communication

It just can’t be stressed enough how important collaborative communication is to your outsourcing venture. You may have the best teams, the best tools, and even the best outsourcing vendor you can find for your outsourcing initiative but with a lack of communication, all these elements will be useless. Establish and maintain honest, timely, and collaborative communication among all the people involved. Communicate your outsourcing programs not only to your stakeholders but also to your teams and outsourcing vendor.

Sources:

Linda R. Dominguez. The Manager’s Step-By-Step Guide to Outsourcing. McGraw-Hill Companies. 2006.

IT Business Edge. Six Key Success Factors for Outsourcing. Allied Digital Services. 2010.

Casey Answers to Outsourcing Questions!

 Meet outsourcing Casey!

 

 

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