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Outsourcing Strategy – Successful Client-Vendor Relationship

Outsourcing strategy is on the top list of the best techniques used by companies to grow their businesses. The advantages accruing from outsourcing outweigh any potential risk that may come with this business strategy. Proper client-vendor relationship is necessary for successful outsourcing. A company should work hand in hand with an outsourcing company in order to achieve the best result.

How Does a Company Ensure Successful Client-Vendor Relationship?

As noted earlier, outsourcing is a team work involving both the vendor and the client. Proper relationship between these two parties to the contract is necessary for the success of the final outcome. It all begins with the selection process. A company should use the best possible selection process to decide who the best candidate for its outsourcing requirements is. Such selection criteria should also include methods for evaluating the potential vendor’s ability to communicate effectively. 

Among other factors, effective communication between the vendor and the client is the major key to achieving success with outsourcing strategy. Let’s examine some of the essential ingredients to successful client-vendor relationship in an outsourcing contract;

Strong Contractual Relationship

There should be a firm contractual relationship to regulate the project. This is a great way to get each party committed to the contract. Also, any breach of agreement can be compensated adequately when a strong contractual relationship is put in place. Both the client and the vendor are bound by the terms of the contract.

The Vendor should Participate in Strategizing Meetings

The vendor should be allowed to participate in strategizing meetings associated with the outsourced business function. In fact, the vendor should be allowed to have the final say on this matter. Remember that the vendor is an expert in the specified function, at least your selection process picked such vendor as the best among others. So, the provider should be allowed to spell out the best possible strategies for accomplishing the task. This does not imply non participation on the side of the in-house team. The in-house team should make meaningful input, but the professional decision should be left in the hands of the expert.

Fair Negotiation

Achieving cost efficiency is usually the driving force for taking advantage of outsourcing strategy. However, a company should embark on fair negotiations, something that would be practical for both parties. Ridiculously low bid or offer from a vendor may be a signal for poor quality service. Therefore, a company should keep an eye on a fee that would motivate the outsourcing expert to provide the best possible service, while achieving significant cost efficiency at the same time. 

Once the two parties work in absolute harmony, the final outcome of outsourcing strategy will be extremely satisfactory and beneficial.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting http://www.123Employee.com

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