There is more to creating a good outsourcing relationship than just choosing the right IT provider.  Establishing a successful outsourcing engagement requires effective communication, which must be done on a regular basis.  Communication is an area of the outsourcing relationship that should not be underestimated in its impact on IT projects.

During the initial negotiations it is important to get all of the key contract terms and conditions hashed out.  However, just because the buyer may have gotten it right in the beginning, things change - people change, technology changes, timeframes change and budgets change.  There are certain topics that must be discussed as the outsourcing project progresses, including when something is wrong or when there seems to be a misunderstanding of the project’s requirements.

It is crucial to talk with a vendor when something is wrong.  Unfortunately, things do happen, such as missed deadlines and improperly designed processes.  Some IT managers will initially avoid conflict and choose to avoid uncomfortable conversations with the global outsourcing provider.   If something is wrong, the buyer should address it head on, with the goal of increasing competency and capability.  A buyer can benefit from creating a culture where conflicts are appropriately addressed and handled.

Sometimes there is a misunderstanding of the project’s requirements, which can lead to a failed outsourcing relationship.  When an IT company is working with a vendor located in another country, misunderstandings can become even more prevalent, as there are cultural differences and language barriers.  This challenge can cause frustration and may disrupt the development of the IT project.  To overcome this potential complication, IT managers should schedule regular meetings to review the project’s status.  It would also be advantageous to take the time to understand the vendor’s culture to avoid a cultural clash.

Outsourcing is an effective way to increase productivity, while saving money at the same time.  As long as key topics are discussed, an outsourcing relationship can greatly benefit both parties.

If your company is considering IT outsourcing, contact the global sourcing strategists at A&E Consulting at 661-200-3612.  We can help you choose the right outsourcing location and partner.  It is our goal to provide each client with a personalized solution that minimizes the time of implementation and maximizes the return on investment.

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