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.

 

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