How to Form Successful Outsourcing Relationships

Even as the UK appears to be coming out of the recession, there’s no doubt that UK organisations will continue to look to outsource vital services over the coming months. The promise of increased efficiency, lower costs and working with subject matter experts mean that, for some businesses that want to streamline their operations, outsourcing seems to be the best solution. The question is, how can you ensure a fulfilling, successful outsourcing relationship?

One of the main reasons for outsourcing failure is that very few businesses seem to grasp that fact that all relationships need careful attention. Many organisations think that people who excel at managing internally will also be able to manage complex outsourcing contracts with external parties.  In reality, outsourcing success will be much more achievable with a proper training programme.

There are a number of benefits that training can provide when it comes to managing an outsourcing engagement, particularly in helping organisations to identify the right service partner for their business.

One key failure in some outsourcing deals is the one of over promising and under delivering. By training decision makers to look for a supplier that is a good fit, both in terms of culture and relevant expertise, organisations will be able to encourage a more collaborative and successful relationship. This will allow them to discuss problems openly and identify practical solutions before the issue gets out of hand.

Another alternative solution would be to hire a dedicated costs management specialist, such as The Procurement Group to assist in the sourcing and negotiation of external service contracts.

The Procurement Group

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