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Top 5 Tips to Have a Healthy Relationship with your Service Provider

by: Admin

Tuesday, September 21, 2010 |

Outsourcing can only be an effective business solution if you select the right service provider who can offer the appropriate service delivery models for your needs. Contracts and services agreements between you and your provider cannot take the place of a healthy relationship where you see eye-to-eye and understand each other’s concerns.

Tips for achieving a profitable partnership with your service provider

Here are Top 5 tips from TPI Senior Advisor Rainer Blütling that can help you achieve a profitable partnership with your service provider:

Communication should be consistent. Ease of communication is one of the most important criteria that will help make a healthy relationship. This will allow your provider to have a clear understanding of your needs. It might be useful to appoint someone who will be constantly in touch with your provider and who will remain updated throughout the entire outsourcing process.

Effectiveness in maintaining relationships should be supported with training and organizational development. Business practices and processes are constantly changing. Companies should keep on their toes in terms of staying up-to-date in order to understand and positively relate with their service providers. Learning how to be effective in relationship management can lead to significant change in your interaction with your third party partners.

Build a trust-based framework for addressing future challenges and opportunities. A relationship typically goes through road bumps and in maintaining a buyer-supplier relationship; thus, it will be good to set a framework that will allow you to handle challenges that can cause inefficiencies and losses.

Develop effective measurements to establish a balance between mutual behaviours and benefits. It is far easier and more efficient to manage a relationship based on objective standards, rather than going by feel or perception. Status updates and service reports should be timely delivered so expectations are set straight. Also, a “balanced scorecard” approach should be implemented to support a healthy exchange.

Assess, plan, and manage risks. Anticipating and evaluating risks will be beneficial to you and your service provider. Bringing this to the table early on will allow both parties to address the concern to avoid risk and threats, as well as prepare for “damage control” in case it ensues.



Thursday, September 23, 2010

Very insightful post! I think the key to an effective outsourcing exercise is to ensure that you are aware of what you hope to gain from it, are able to communicate it to the service provider and are able to monitor the results in realtime. For all this to happen the key is effective two way communication.

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