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4 Ways to Sustain Engagement in Outsourcing Deals

by: Sarah Joson

Wednesday, July 16, 2014 |

Keeping Clients Engaged in Outsourcing Deals

The sales department of outsourcing service providers faces several challenges every day. They have to work with their marketing team in setting realistic expectations when it comes to lead generation, the number of requests for proposal (RFP) which is diminishing by the hour because of tight competition, and the hard sell or cold call approach that is not as effective as it was before. They also have to deal with the constant pressure from their organizations executives.

It’s hard to blame them when deals lose their luster, especially in long-term outsourcing contracts. It has become a constant struggle for outsourcing deals to survive because what happens is for the first few years, the provider does well, then they become complacent and careless, and right before the contract ends, they will do whatever they can to salvage whatever’s left of the outsourcing relationship in hopes of getting the client to renew their contract.   

A post at HorsesforSources.com shared four ways that can help restore and reinforce client-provider relationships in the outsourcing industry:

1. Look past the contract. When it comes to closing deals, providers often become too focused on landing a contract, that they say all the right things to win the client over. However, they soon forget the promises they made when they were still in the courting stage and leave the clients on their own.

Service providers should have a concrete structure where their propositions are realistic and achievable, instead of filling presentations with buzzwords that are only used to confuse the clients. There are numerous opportunities for them to develop and cultivate their relationships that can break contract longevity records, as opposed to providing quick fixes for clients. Also, it has been found that outsourcing relationships that are built on trust and collaboration become more successful.

2. Perform a standard background check. There are several ways for buyers to know the real providers. What happens next once the contract is signed? Are they still as accommodating and amicable as they were during the RFP process?

They can hire an expert who will do the work for them, or they can contact past clients to see their real track record.

3. Early termination should be covered by the contract.
It should have provisions for early termination, as well as sufficient rewards until the deal expires. This way, providers will be able to properly set their goals according to the initial agreement.

For the providers, it will serve as protection should the client go on a power-tripping frenzy and begin to lowball or set unworkable goals.

4. Appoint a POC.
Having a point of contact will make it easier both for the outsourcing services provider and the client. The POC is assigned to handle the operation and act as the middle man who will ensure that the concerns and deliverables of each party are addressed.

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