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How to Reverse Bad Outsourcing Deals

by: Sarah Joson

Thursday, October 4, 2012 | Outsourcing News |

Tips from Gartner Vice-president and Research Director William Mauer were recently shared by Karl Finders at ComputerWeekly.com. The post highlighted several issues faced by outsourcing clients and service providers that often get in the way of an operation’s progress.  

The article stated that some issues are already noticeable during the first few stages of an operation. In the transition stage for instance, delays caused by the provider result to unnecessary stress for the client.

One of the main reasons client-vendor partnerships are set for failure is because they do not consider it as a long-term relationship.  Another factor to consider is the relevance of the initial contract to the business environment.  Clients and providers often overlook small details that are crucial to the operation’s success. These could lead to the demise of each party’s efforts.


How to recover from bad outsourcing deals

Below are nine ways that can help outsourcing players recover from crumbling relationships.

1. Identify what’s wrong.
Before you start mending the situation, you have to first identify the cause of the problem and the affected areas of the operation. Estimate the costs of fixing the problem and check across all departments and goals of the business.
2. Identify your goals.
To come up with the solution, of course you need to know what you want to achieve with the given budget, sales and marketing constraints, how long it will take, and who will manage the operation as things are being fixed. This will then guide you in creating a strategy.

3. Rewrite terms and conditions.
Parties need to be on the same page regarding the terms and conditions of the operation. Priorities should also be modified accordingly.

4. Clearly identify the roles of the employees from both sides.
As the operation continues, there will surely come a time when the next step will need the approval of a certain person within the partnership. Furthermore, both parties should be well aware of what’s going on so the operation can run smoothly.

5. Assign an overall manager.
Someone should be assigned to spearhead the entire project. His/her tasks involve overseeing the processes to make sure deadlines are met. This person should be present during the observation stage of the improvement process or should be briefed properly before proceeding with the operation.

6. The plan should have room for changes.
There will be instances when the action plan would need revisions. To help keep things going, loop everybody in emails and if possible, meet on a monthly basis so that they can voice their concerns.
7. Always update the managers and be transparent.
As the project progresses, the management, employees, as well as the investors should be regularly updated. This will make it easier for everyone to identify if they are close into achieving the goal of the operation.
8. Create a more workable relationship.
There have been issues before between the client and provider but if progress is seen, they should put differences aside for a smoother and faster operation.

9. Mitigate risks with a management plan.
Having a risk management plan is an additional security blanket if things take a turn for the worst.

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