by: Sarah Joson
Monday, February 27, 2012 | Outsourcing News |
In outsourcing, establishing a sound relationship right at the beginning - even during the negotiating process, is crucial. As the contract builds up and operations begin, problems will definitely arise from poor partnerships which can lead to the demise of the entire operation. Kit Burden shares an article at TechRepublic.com about three important factors that can help outsourcing deals become successful.
Trust in outsourcing deals is probably one of the biggest issues, with all the data and ideas being shared back and forth. Both parties want to gain something from their respective partners. Vendors want to charge more to earn more; customers want to get the best deal at the lowest price.
If one of the parties does not understand a certain part of the deal, the unaffected group should be able to provide resources or answers to lessen disparity in outsourcing contracts. Also, a certain level of openness and control over data should be arranged before closing a deal. An example is when one of the servers suddenly shuts off, affecting the whole operation, the provider should immediately inform the client while finding a solution to the problem.
Variations and Plan Bs
Even if the clauses in contracts are precise and gridlocked, the economic environment and the industry itself might not be so stable. This will then test the flexibility of the vendor-client relationship. It is also hard to predict what’s going to happen next, which is why having margins for errors is a great way of minimizing additional costs.
These outsourcing contracts will of course go back and forth from vendor to provider. These will go through several revisions and will affect the relationship of the partnership. All in all, both parties should help each other grow and learn.
While there are other factors outside the realms of the outsourcing contract that affect a provider-client relationship, having a crystal clear contract in which both parties have a better understanding of each other’s roles and responsibilities is indeed essential to make the outsourcing project successful. Build trust. Keep everything transparent. Be prepared for any challenges.