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Things to Know to have Successful Outsourcing Relationships

by: Sarah Joson

Thursday, April 19, 2012 | Outsourcing News |

Creating Solid Outsourcing Relationships

As industries become more diverse and platforms in achieving goals are evolving, it is safe to say that more and more clients have raised their standards when looking for the right outsourcing partner. During the first few years of outsourcing and to combat the effects of recession, buyers were initially inclined to go for the more affordable business solution, but that’s no longer the case.

Quality of output and long-term solutions are what high-end buyers are looking for nowadays, and some of the factors that affect their decision-making process are the actual costs of the entire operation against supplies used, sustainability of the operation, and specific expertise of labor pool. This becomes a window of opportunity for the IT sector as the market has grown and new services are added.

So how should clients deal with their service providers, now that the outsourcing industry is evolving? An article posted by iGATE Patni Senior Vice-president David Kruzner at ITWorld.com enumerates things to consider to have a successful outsourcing relationship with vendors:

Look for the vendor that will give you the most value for your money.
When finding a business solution, avoid looking for an easy way out. Make a hypothetical scenario in your head on how the solution will help your company grow and how it will culminate itself as a valuable arm to the company. Also, since you probably have assessed what the operation will require, there’s no need for you to ask the incoming outsourcing partner to redefine what is lacking in the operation.

Clients should be able to spot the right vendor based on the previous work they have done and what the vendor can contribute to the company as a partner.

Consider vendors as team members.
To create synergy in the operation, clients should treat the service provider as an integral part of the team. This would mean that the vendor will carry out the values and goals of the client. They should also incorporate the outsourcing process as a long-term business solution rather than a quick fix to internal problems. Also, integrating the IT department and outsourced party is a great way to maximize the expertise of the latter because they are given the chance to look into other opportunities.

Proper alignment and definition of tasks for service providers
 With the economy that businesses are facing today, stricter management practices and metrics should be applied for IT outsourcing partnerships. Having a specific goal and working around it was one of the factors that “gainsharing” in the 1990s lacked, which was why most of the partnerships back then failed.

True partnerships work together by eliminating risks one by one, and achieving goals as they progress. Cost-cutting and labor arbitrage are a thing of the past, as new clients strive to achieve long-term goals and grow with their outsourcing partners. 

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