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How to Establish a Good Outsourcing Relationship

How to Establish a Good Outsourcing Relationship

Main drivers of a successful outsourcing experience. Now we’re going to discuss how firms looking to outsource, or already doing so, can help establish a good outsourcing relationship, according to Grant Thornton:

Do Your Research

As we have seen in Grant Thornton’s latest IBR survey, there is more to technical expertise behind any positive outsourcing experience; non-technical skills should be taken into account, too. Hard, specialist skills may be becoming more standardised and these soft skills or ‘intangible assets’ become important differentiators when assessing potential outsourcing providers.

If you are outsourcing for the first time or looking for a new provider, determine the prospective company’s reliability and relevant experience through case studies and testimonials. It won’t hurt a bit if you do an extensive research as this company will be your business partner.

Evaluate Regularly

If you are already outsourcing, it is important to review your provider’s performance, at least, every two years. Aside from the quality-of-service standards in your outsourcing agreement, you should also evaluate the said non-technical factors like responsiveness and communication practices. As the survey uncovered, it is important for businesses that their outsourcing provider is able to meet with them at very short notice – within 24 hours. Check for the company’s resource management and project governance.

Devise New Standards

Now that we have proven that non-technical skills are important ingredients of a successful outsourcing experience, it’s time to come up with new metrics aside from the specific levels of service in your contract. Include softer skills like average response times to client queries and the frequency and success rates of provider ideas for streamlining processes in your key performance indicators (KPIs) in order to capture these areas and have a more comprehensive overall review.

The significance of non-technical attributes that this research has shown confirms that the criteria of firms outsourcing are evolving. Therefore, it is important to develop ways to measure performance and provide training in order to maintain a positive outsourcing relationship.

The Outsourced Accountant helps accounting firms from all over the world grow their capacity, margins and profits through global outsourcing. Contact us to find out more about how we can help your firm.