If a company is considering outsourcing any part of its business which it considers non-core, it should always find a way of making sure that the outsourcing relationship is a success. The business should not only focus its energy on pushing down costs but in improving quality of goods and services. However, outsourcing management is not such an easy task – but it is necessary if both the business and the service provider want to mutually benefit from the relationship.
Outsourcing management starts with both the business and the third party understanding the goals of the business. This will inform how the performance of the outsourcing processes will be assessed. For best results, outsourcing management must involve both parties being familiar with how the respective internal processes of each party. Both parties should ensure that the relationship is carried out to the benefit of all parties. Both should also be prepared to face challenges and develop channels for addressing any differences that arise. The records of all communication between the parties should be maintained properly for future reference and to better resolve any disputes that might arise.
The outsourcing company and the business should develop performance measurements around timeliness, product and service quality results, customer feedback, and regulatory and statutory compliance. Even though the metrics defined in outsourcing management are mainly meant for the business satisfaction, they should be practical, realistic, easy to understand and to measure. Vague and unrealistic goals will strain the service provider and leave the service provider feeling shortchanged. Each party should be given the opportunity to frankly state what they would and would not be comfortable with. These measures should be monitored at regular and agreed upon intervals to make sure any issues are identified before they get out of hand.
Communication is key to outsourcing management success. And this must start at the negotiation stage where each party must keep the other well briefed of their decisions and opinions. After the contract is signed, this communication gains even more importance. This will help preempt problems and ensure that the business is always up to date with the significant goings on at the service provider’s business premises. In order to successfully manage the relationship, both parties ought to set aside time to communicate with each other daily. This can be through daily meetings or through the exchange of daily performance metrics that keep everyone briefed on the state of affairs.
Daven Michaels Author of the book Outsource This!
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Great Article Daven. Great piece of advice for all the intending to go into the outsourcing business. By the way Thanks for this one.