The Outsourcing Relationship

Filed in archive Best Practice on October 20, 2006

Q: What is the secret of a successful outsourcing deal?
A: It's the relationship, stupid.

Before publicly denouncing me from using such a foul word in this blog, let me clarify that this answer did come from me directly. This was the message being sent out in the recently held Outsource World conference in New York City last October 17-18.

The two-day conference centered on avoiding the outsourcing pitfalls that many companies managed to encounter during their outsourcing transactions. According to statistics, 50% of companies often fail in their outsourcing deals. This situation could be prevented if companies would realize that having a good and clear relationship with their outsourcing partners. A simple yet necessary factor in every outsourcing deal.

Here is another "word of wisdom" to be absorbed in the said conference:

You (companies) need to manage as you have never managed before, if you want your outsourcing relationship to succeed.