Yu Gi Oh Samsung Galaxy S3 i9300 Cases 7 Tips for Negotiating an Outsourcing Agreement DC Comics Samsung Galaxy S4 i9500 Cases
7 Tips for Negotiating an Outsourcing Agreement
While cost reduction is often the primary motivation for outsourcing,Yu Gi Oh Samsung Galaxy S3 i9300 Cases, reaching that objective is often much more Trending Fashions iPhone 4 Casescomplicated than choosing a low-cost provider. Unlike standard service agrNHL Flyers iPhone 4 Caseseements,DC Comics Samsung Galaxy S4 i9500 Cases, outsourcing engagements involve complex relationships between clients, customers, and outsourcing partners. Relationships that shape how cuCentral Missouri iPhone 4 Casesstomers view your business now and into the future. Before making a decision based solely on cost, consider the following 7 tips to build a better outsourcing program.
2) Meet clients. Even if the services you are contracting for seem straight forward, try to conducLoyola Marymount iPhone 4 Casest site visits to existing clients or interview existing clients over the phone. Often the most valuable insights come from simple observations. If none of your potential vendor's employees have first name relationships with their opposites at client companies, you may want to look elsewhere.
7) Define escalation paths. Creating an escalation path for issues using basic project management tools can be extremely useful when contracting with an outside agency. While no one ever wants problems, a clear path of escalation with timelines can improve your chances MLB Astros iPhone 4s Casesof success. Knowing what to do when things go wrong is invariably helpful in making them go right.
5) Invest in training. While you would expect your vendor to have the training needed to perform the tasks you've outsourced to them, they may not provide services to your customers in a way that represents your company's values and culture. Providing some level of training to all of the members of your new partner may yielKentucky iPhone 4 Casesd benefits not obtainable in a "train-the-trainer" model. Like the children's game of telegraph, third-party training often misses critical nuances in your business.
1) Build relationships. Outsourcing relationships involve intense long-term commitments. Before you sign on the dotted-line, take the opportunity to build relationships at all levels of your vendor's organization. Making your vendor's employees an extension of your staff will pay dividends in the long-run. Strong relationships help bridge the gap between contractual language and the changes that will inevitably take place in your business.
Contracting with the right outsourcing partner is only the first step in an ongoing relationship. Much like a wedding in a marriage,Oregon State Samsung Galaxy S4 i9500 Cases, an outsourcing agreement can provide a solid foundation for a long term relationship. Over time, roles change and needs evolve. Making sure your outsourcing partner will be there to support you involves building deep relationships to help endure the normal ups and downs of outsourcing engagements. While trust is certainly a factor, meaningful conversations that discuss the goals of the relationship are key to success.
3) Communicate clearly and often. Relationships between outsourcing partners and your staff often start off on the wrong foot as employees often see outsourcing partners as a direct threat to their livelihood. While itNHL Sharks iPhone 4 Cases may be uncomfortable, a direct conversation with your employees to help them understand your decision to outsource will make it much easier for your vendor to succeed. If your employees aren't invested in your vendor's success, thNBA New Orleans Pelicans iPhone 4 Casesey will be in their failure.
6) Avoid carrots and sticks. While carrots and sticks seem like a logical way to ensure contract compliance, vendors often build fees and penalties into their cost structure, thereby eliminating their effectiveness. Carrots and sticks can also lead to a distortion of key production data that can dramatically effect your overall business. Your business will be better served by a method that actively brings shortcomings tMLB Brewers iPhone 4s Caseso the surface in search of solutions rather than masked to serve the interests of your vendor in collecting performance bonuses and avoiding penalties.
4) Understand your vendor's economics. Make sure you understand the economics of your vendor's business. If you can't see how they are going to make money providing the services you need, you won't be getting all the services as promised, at least not in the long-run. No one can afford to lose money foreverGonzaga iPhone 4s Cases. If your new vendor comes to control an important part of your business, you may find yourself supporting a struggling venture that you hired to support you. Cheap isn't cheap if you don't get what you paid for.
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