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Successful Outsourcing Projects – The Key Is Strong Relationships With Service Providers

By Maneet Puri on Mar 22, 2010 |Business

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Offshore outsourcing is an increasingly popular trend in the corporate world. It the recession hit times, businesses are faced with the increasing pressure of minimizing their operational costs and maintaining their leaning profit margins. However, since offshore outsourcing projects involves delegating your crucial business processes or information to service providers located in offshore countries, businesses are often skeptical about the concept. The failure of most offshore outsourcing projects can be accredited to incompatibility between the client and the service provider. Also, if you fail to choose a professional and credible service provider, you may be at risk of low quality deliverables or worse. Therefore, not only is it important to spend a good amount of time to research about prospective service providers but also, invest in building a strong relationship with them. Especially in case of long term contracts, you will be bound with a particular service provider for a considerable period of time. Even if you want to make a switch, the costs of shifting within the life of the contract will be more that you can handle. Because of your high dependency on the service provider, it becomes very vital that both of you make efforts to build and maintain an excellent working relationship. Benefits of having Good business Relationship with your Service Provider There are three major benefits of building good relationships with your service providers. More Pro activeness When you are on good working terms with your service providers and share a strong relationship, they are more proactive in their work and are encouraged to make suggestions for the project. These suggestions spring from their years of experience in the industry and would therefore would benefit both the parties. Focus on Long Term Benefits Strong working relationships are the foundation of continued partnerships. When you are on good terms with your service provider, they are much more adjusting to small time adjustments and they invest for long term areas like infrastructure and training. All this ultimately works to enhance the quality of deliverables for your project. Increased Coherence When the client and the service provider work together actively, they can leverage strengths of both the parties and compensate for weaknesses of wither. This will ensure greater returns on all the efforts that are made and therefore, more efficiency in the project outcomes. Tips to Strengthen the Relationship with your Service Provider Iron out Cultural Differences One of the greatest challenges in offshore outsourcing projects is that of cultural barriers. The different corporate cultures of the client and the service provider can create tension between their objectives as well. Hence, make sure you sit together and discuss common goals and objectives for the project and how you can iron out the differences. Communicate Regularly Regular communication with your service provider can ensure that both of you are on the same page when it comes to evaluating the various aspects of the project. This would in turn prevent any issues and disputes in the future. Maneet Puri is the managing director of LeXolution IT Services, a renowned IT Services company based in India that specializes in providing a range of KPO services to its clients. He has been associated with the offshore outsourcing industry for more than 10 years and serves his clients with efficient and cost effective internet research and virtual assistant services .

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