The success of the outsourcing partnership between two companies is always dependent on its management. If everything is managed properly, then everything will go as planned. Otherwise, improper outsourcing management could only lead to unmet expectations, costly mistakes and worst of all, project failure.
For proper outsourcing management to take place, here is a list of things that a manager should do (according to industry analysts):
(a) Keep a copy of the contract. Before it will be signed by both companies, make sure that all terms and conditions are documented. Make sure to renegotiate on costs when there is a need to.
(b) Decide which party will manage the relationship. Establishing good working relations can definitely lead to a lifelong commitment to excellence.
(c) When shifting from in-house to outsourcing, it does not follow that the person who previously run business operations is also the right one to do the outsourcing job. There are a lot of undiscovered experts out there and it is a wise choice to let the outsourcing firm decide for you.
(d) Project success is the determining factor whether processes work or not. Performance metrics should be established to make way for process improvements, if necessary.
(e) Settle disputes up front and come up with an agreement that is approved to both parties. Maintaining a healthy working relationship is a must before possible problems might arise.
A good outsourcing management in place always means good business. Following these simple tips can definitely result to better client-supplier bondage, producing desired outcomes in no time.