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NZ Firms Reveal Top Reason for Choosing Outsourcing Partner

by: Sarah Joson

Tuesday, June 16, 2015 |

NZ Firms Outsource not Because of Costs

A post in Computerworld.co.nz discussed the details of Grant Thornton’s latest International Business Report (IBR) survey where it was discovered that New Zealand companies do not consider cost as the top reason when choosing an outsourcing partner.

According to Matt Parkinson, Partner, Privately Held Business at Grant Thornton New Zealand, many assume that cost and technical know-how of third party service providers are the crucial success factors in outsourcing partnerships. However, the IBR study discovered that reliability, communication, trust, and other non-core skills are important to making client-vendor relationships work. In fact, it is often more important than factors such as skills and capabilities. Parkinson noted that even if firms still consider the cost, it is not the most important factor when choosing the outsourcing partner.

New Zealand executives who answered the survey revealed the most important factors when selecting an outsourcing provider: experience in the industry (46 percent), trust (36 percent), and ability to adapt and understand their business (36 percent). Cost of services as a factor is at the fourth spot with 18 percent.

Parkinson also cited report findings that 91 percent of business owners in New Zealand identified good communication as a key driver that helps improve the outsourcing experience. In line with that, New Zealand ranked 22 out of 35 countries based on their ability to communicate, and all the survey participants in the top seven countries have also stated that communication is crucial to successful customer service.

Parkinson also said being assertive and responsive are contributing factors to good communication in outsourcing relationships. In fact, 75 percent of business leaders around the world pointed out that their best service providers are able to reply to their requests and inquiries within a short period of time.

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