In long-term relationship, the major characteristics for success of the relationship are mainly focused at negotiations. Some of the major practices employed for a management success of outsourcing relationship is discussed below.
Keeping relationship between key management personnel:
If the working relationship is strong and good understanding between the key management of both teams, then such relationships often always produce a long lasting result. Most of the successful research for outsourcing has proven that peer method of friendship and working with one’s counterpart in the opposite organization has played a major role in long-term relationship. Also one contact point maintenance will avoid disorderliness. Organizations can do with a project manager per client or per project.
Well-defined criteria and quantifiable objectives:
From the beginning of the contract the objectives to be achieved by outsourcing should be quantifiable and must be established as criteria right. If the performance can be compared by the customer with the pre-established objective, outsourcing dividends would be visible. The vendor will know its position in meeting customer expectations.
Developing special board of members:
Setting up of special boards or executives committees that map’s out the significant strategies for smooth and efficient handling of outsourcing relationships, is what successful outsourcing relationship is involved with. Pointing out of resolution and fast projection of issues are a major responsibility of this team.
Incentives and penalties:
Customer expectation is exceeded through the encouragement of provider by putting to place performance based pricing. When performance can not be measured by criteria, incentives applied and in their shortfall the penalties are imposed. Understanding of payment will increase commitments of work which will help both sides in the long run to understand the code of the work better.
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