How to have a successful outsourcing relationship

13.01.2009

The outsourcing projects that succeed are those where the potential outcome has been worked through with solutions developed for every possible scenario. It is inevitable that something will occur that will throw a spanner in the works, whether it's a financial problem with the company, a takeover bid, budget cuts or, as we're seeing now, the impact of wider macroeconomic forces on the business as a whole.

Incorporating contingency into the project is not an optional extra -- it's absolutely critical to the success of any outsourced project. It is amazing in how many instances projects will fail merely because a few simple projected outcomes haven't been prepared for; yet it takes relatively little time to work through a series of contingency plans which encompass the vast majority of eventualities.

One way of understanding how a project is performing and whether any flexibility is required is by setting key performance indicators, which allow both parties to monitor progress. these indicators throughout the project helps ensure that the project remains on track. This will enable project teams to remain flexible and ensure quick responsiveness to any obstacles.

Outsourcing arrangements, approached with the right mindset, can be among the most successful and rewarding business partnerships. Adhering to the four points above -- and quizzing prospective providers in the light of them -- can help organisations implement projects in a pain-free way that minimises the risk to the business.

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