successful outsourcing: top tips

Post on 31-Oct-2014

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What might be the recipe for a truly successful buyer-vendor outsourcing arrangement?

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Successful Outsourcing

“Clarity of purpose and partnership are essential for outsourcing to succeed”. (Josh Sims, Raconteur.net)

Outsourcing is no longer viewed simply as a means of saving money or of bringing expert competencies outside a business’s core activities.

What is it about?

What is it about?

According with some of the latest research reports in UK, “53% of chief executives outsource as means of tapping into innovation, with 92% of the chief marketing officers seeing it as a way of better analysing what their customers want”.

1) Be transparent with staff to ensure a smooth transition – be collaborative

2) Share the risk – provide incentives for both sides of the arrangement

3) Ensure cultural alignment – buyers

4) Don’t be tied to restrictive contract arrangements

5) Engagement should be face to face and at top management level

6) Performance indicators aren’t necessarily indicators of the great relationship you need

7) Deal with problems honestly and head-on

8) Be flexible – both sides of the arrangement need to be ready to adapt to change

“In outsourcing, success is all about keeping it human – and the leadership on both sides to bring that out.” (Robert Wentink)

So, what is it about?

“Outsourcing isn’t right for everyone”

“It’s down to the culture of the respective organisations and the people there to manage them. Done well, outsourcing works for many. But it’s not a panacea.” Kerry Hallard, Head of the National Association of Outsourcing (NAO)

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