How to Have a Successful Outsourcing Relationship



The first thing to understand when you consider outsource to India is that it is going to be a long-term arrangement. The foundation to a successful relationship has to be laid at the very start, at the stage of negotiations. Here are some of the most important steps that have helped companies in establishing a successful relationship. These practices are favored by companies from major outsourcing destinations like India.

Stay in Touch Where it Matters-
The key personnel from both sides should have a good working relationship and understand each other. Studies into outsourcing to India indicate precisely this good peer-to-peer relationships and regular contact with one's counterpart help sustain the outsourcing relationship success. It is good to have a single point of contact, as this helps to avoid confusion. A good way to do this is to have one project manager per project of per associate.

  • Be Specific-
    The parties should set well defined criteria and quantify the objectives at the very start of the association, put down clearly on paper. It helps the buyer to compare actual performance with the pre-defined goals. It also helps the vendor in that they get to measure their own performance and see where they stand. The parties should be clear on objectives, service quantity, quality standards and customer satisfaction, all in measurable terms.

Have a Special Team-
The companies involved in outsourcing agreements should set up special boards or committees devoted to the success of the deal. These boards or committees have to develop the best strategies for effective outsourcing management. This team can also be useful to identify issues and resolve them quickly.

  • Reviews-
    It helps a great deal to have formal review meetings regularly. These meetings help to resolve problems before they escalate and also develop an understanding of what the future goals and objectives are. These meetings can be used to discuss products and deliverables.

    The client has to have a system for ongoing training of the vendor personnel. This is needed so that the business goals of both parties are aligned the right way. With regular training, the vendor's personnel develop a good understanding of the issues that drive the client's requirement. The area of training could be management, IT or other areas of technology depending on the client's business and outsourcing requirements.

  • Here are a few must-follow steps when you outsource to India. These steps are very useful in selecting a suitable vendor and planning out the entire process.

      • The first step is to study your own business case. Study all your requirements of the project at hand. Prepare a list of documents you will need for carrying out the negotiations.
      • Next, visit the websites of companies that seem to suit your needs. This helps to find information like how long the company has been in overseas outsourcing, their strengths and weak spots, industry reviews and areas of experience and expertise. You can shortlist a few companies based on this information.
      • Now it is time to contact the companies. Send the companies a general enquiry about your requirements. Use the feedback form in the company's website for this.
      • The first stages of contact should be used to learn more about the company. Ask about the company's experience in similar projects as yours as well as their pricing, policies and project strategies.
      • Now prepare a full fledged project statement in consultation with the vendor company.

    Strategic Outsourcing to India...Read More


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