Business Process Outsourcing - Making it Work
There are many articles written on the reasons to outsource including:
- Cost reduction
- Service improvement / Internal issue resolution
- Focus improvement / Core competency execution
- Skills access / Capability release
- Risk sharing
- Investment avoidance / Funds attraction

All are potentially achievable, but how many services fail through organisations being too greedy and essentially seeking something for nothing or providers over committing to things not attainable within the constraints they are accepting?

Success in an outsourcing relationship can only be achieved with a level of openness between the parties involved.

Customers should:
- Be truthful with themselves about the objectives they are truly seeking to achieve and not use the published lists of reasons as being their shopping list of benefits - this is just being unrealistic.
- Remember the past and fully recognise the benefits being delivered by their partner and certainly not try to over-manage them when history may show that the service they handed over was failing - how can new benefits to achieved if old management styles remain
- Understand there must be something in the relationship for both parties for it to be successful - starving your partner will just lead to under-investment and eventual service failure - Why go down paths where the negative outcome is so predictable?
- Understand their role in the services being delivered and ensure their contribution (or perhaps lack of it) is not undermining the overall outcome of the arrangement

Providers should:
- Be open with their customers about the benefits that can realistically be obtained from the starting point they are presented with and the timescales to achieve them. Also be clear about the responsibilities of the customer in achieving the desired outcomes. (Outsourcing is not, and never can be, a set and forget process).
- Focus on delivering benefit to the relationship not generate internal distractions (however academically brilliant they may appear to be)
- Fully understand (and convey) the investment requirements over the life of the relationship and ensure they have sufficient risk appetite, and customer buy-in to embark upon the journey before it commences and certainly in advance of starting to commit funds.
- Understand the role people (and personal aspirations) play in the on-going development of the relationship. The retention of appropriately skilled resource to deliver the service is key as is the understanding and management of customer stakeholder viewpoints. No amount of technology investment can change these requirements.

These are just a few of the points, that if observed, would lead to a more satisfying and fruitful relationship between organisations and their outsourcing partners.

I would welcome your views and experiences.