Relationship management; an inevitable factor in outsourcing

September 26, 2011: Outsourcing is a wonderful phenomenon, where two different parties with different culture and values meet together for a joint purpose. The service provider and the service buyers both have a common goal, and that is business.

But is it just business; what about the relationship between the buyer and provider from two different extremes?

Outsourcing industry, to be specific the Business Process Outsourcing (BPO) and Information Technology (IT) industry has eventually grown and reached such a big platform in the past twenty years that today directly or indirectly we could find almost every individual related to the industry somehow.

There are many number of service providers in the sector, especially in the offshore market such as India that has maintained a healthy relationship with the overseas clients. But, there are many outsourcing service providers and service buyers who couldn’t follow an elegant relationship because both the parties couldn’t enlarge the value they were expecting to bring up. Relationship is all about continuing an ethical and emotional attachment to the terms and conditions in the outsourcing contract made in-between.

One-sided dominance in any relationship has ended up in disaster. The person who has to be an interface for both outsourcer and service provider has to play very crucial role in maintaining relationships, sometimes that could be a project leader and sometimes outsourcing executives or even the CEO himself.

Success or failure in any outsourcing relationship depends upon the attitude of both the parties. The providers as well as the buyers should avoid blame games and measure the ability of there own teams. When critical situation arise each side will be looking for clearing their part and blaming on the other one. But what is required, is maintenances of a healthy buyer vendor relationship in the outsourcing sector through collaborative discussion and problem solving apart from wasting time on silly arguments.

There are many companies in the BPO and IT sector which has proved that collaborative discussion works. Such companies have generated healthier relationships through measuring each others core values and abilities, and also discussing together and generated ideas worthy to maintain a long run relationship.

This is the time for realization, outsourcing is not just all about hard core business; it is also about emotions, ethics and feelings. The Business Process outsourcing sector requires good relationship management through collaborative work and mutual understandings. The reason for contracts ending up half way is because of the lack of open mind ness and collaborative thinking of both the sides. Harmonious relationships can be achieved only through matured thinking and decision making.

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