Outsourcing Partner Replacement - What are all the Causes?
March 25, 2008
Outsourcing is a magnetic word in the current business field. Company A have wanted a solution for its business and it’s outsourced its requirement to Company B which has its development center in a country called “X”. Now, A is seeking another outsourcing firms for replacing of the current firm. What are all the causes that made the company A to seek other outsourcing firm instead of B?
This is the major problem that most of the outsourcing firms facing currently. Every outsourcing firm should understand that the clients are outsourcing their requirements only because of good solutions in affordable rates. I have listed out some of the points which might have started the problems:
- No proper timelines for deliverables
- Quality of Service
- Communication
- Culture
- Company Size, unable to scale up in size, revenue and branches
- False promises
- Quality of code (IT outsourcing and if the clients is a techy)
- Responsiveness
- Inflexibility
- Any acquisition/merger which would affect the company level
- Outsourcing cost (If the cost of industry benchmark have lower down)
- Performance: Actual performance against expected
- Support and Maintenance in the future (Does the supplier providing support for the existing products/services?)
These are the major level points that would cause the shift in outsourcing partner.
Entry Filed under: B2B, Business, Business Development, Online, Outsource, Web, Web 2.0, website. Tags: best outsourcing, best outsourcing partner, change in outsourcing partner, effective outsourcing, how to outsource, move outsourcing partners, outsourcing a product, outsourcing partner, outsourcing partner change, outsourcing points, outsourcing shift, outsourcing tips, why outsourcing, why outsourcing partners.
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1.
Reyna Flor | April 18, 2008 at 8:41 pm
An outsourcing partner should be able to help evaluate the merits of manufacturing in different countries. It’s important to assess a partner’s experience in the in every distribution. A partner should understand how products must be customized for each market, advise on keeping costs in check, and be able to source material locally if appropriate.
If this won’t happen, probably find or replace outsourcing partner.
2.
Wes Towers | May 13, 2008 at 12:04 pm
Very true. Outsourcing is an interesting topic in todays virtual world. More and more can be done online. We have found many companies prefer to outsource to us as graphic designers rather than have an iternal design department.
3.
Ray Joshi | July 2, 2008 at 8:27 am
You have captured the challenges faced with outsourcing partnerships - recently Forrester released a series of reports highlighting the importance of Mid-size players in IT outsourcing - how they are often ignored for bigger players. In the end the organization goals suffer from the ‘client portfolio management’ game and get second hand service. The report is available for readers at http://www.mindtree.com