Outsourcing is dealing with 'people not spreadsheets'

13 April 2008
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14 April 2008 | Jake Kanter

Buyers must build relationships with outsourcing suppliers and resist the temptation to focus only on costs, according to research.

In a guide to best practice outsourcing from consultancy Alsbridge, buyers are urged to draw up fair contracts so relationships with providers don't turn "sour". It also said "purposeful governance" (i.e. that all aspects of the contract are carried out as they should be) will ensure a good relationship is sustained and managed in a professional environment.

Martyn Hart, chairman of the National Outsourcing Association, told supplymanagement.com: "Outsourcing contracts are often complex and you need a good relationship so both parties can work through it and share success. It's important for buyers to remember they are dealing with people, not spreadsheets."

The Alsbridge report added that once a deal is signed both buyer and supplier must co-operate to put it into action. It explained vendors in good outsourced relationships will work in the best interests of both parties.

The guide also suggested purchasers be properly educated about outsourcing before choosing a supplier. It added that once a supplier is chosen, buyers should take the time to restructure a service to suit their needs.


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