Question

Describes three factors that are essential to enabling a selected outsourcing vendor to succeed. Identify those three factors and briefly describe their importance.

Answer 1

Following can be 3 factors which are essential in enabling an outsourced vendor-

Management team and management style of the vendor-

It is very important that the management team of the vendor has similar management styles as your own company. Following points are key in this-

1. The leadership team of the vendor should have a long-term view

2. They should be in good relationship with your own team in terms of- information sharing, deciding future plans and strategies

3. The management team should be kept in sync with - the technological advancements, upcoming competitor handling strategies, new business models

Help them sync their technology with yours-

Most of the companies these days suffer with the problem that they have an advanced IT systems which manage their day to day business, while their vendors are lagging far behind in using latest tech. This causes following problems-

1. Delays in order processing

2. Errors in databases - such as inventory entries, finances or bills etc.

3. Obstacles in quick business expansion for the firm which has outsourced the vendors

Hence, keep a check that your vendors are using TECHNOLOGY IN-SYNC WITH YOUR OWN FIRM.

Information Sharing and presence of on-site team from your own company-

Many business failures occur due to information loss, wrong information shared or no information shared between the vendor and the firm. Hence it is a key to maintain a proper information sharing system which will-

1. Convey any discrepancies which occur

2. Convey any changes regarding the order from either parties

3. Solve issues then and there itself

4. Not let any negativity creep into the system

5. Maintain healthy relations between the two parties at any cost