Offshore outsourcing is a start of new relation for organization, which can hamper stakeholder, investors, internal customers as well as external customers if the approach for outsourcing and proper strategy is not executed. Successful offshore outsourcing models will give business benefits and organizations growth along with organization’s business focuses on their core competencies. To implement a successful offshore outsourcing model within the organization, a detail organization’s readiness analysis and proper strategy and execution plans for vendor relationship management is essential.
Vendor Relationship Management– Key to successful outsourcing:
Vendor relationship management plays an important role in successful offshore outsourcing. A strategic approach to successful vendor management comprise of these critical steps:
 Organization needs to set the priorities of offshore outsourcing and the same has to be shared with outsourcing vendor.
 Utilizing vendor to suggest and prepare business case for your organization,which will also help them to understand organization core business and refine their proposal so it better meets organization’s needs.
 Establishing a true collaborative partnership with vendor by treating them not only as vendor but also as business partner. It will help organization to develop long-term relationship with vendor.
 Organization needs to look for creative way of develop relationship with the vendor. There shouldn’t have to be only price-delivery relationship with vendor.
 Ongoing relationship building apart from cash flow exchange. Organization also needs to understand business functions of partner. Organization also needs to evaluate time to time whether vendor helped organization in their business growth.
 The approach of organization for vendor will be to get competitive bids all time. A proper communications needs to be set between organization and vendor to understanding each other’s decision-making points.
 The approach for offshore outsourcing relationship needs to be long-term. A win-win relationship will make establish a true relationship.
 Offshore outsourcing contract negotiation with final two vendors, organization needs to avoid discussion with only final one.
 A balance of value vs. price during vendor selection and negotiation.
 Foundation of trust and respect needs to be established between organization & Vendor.
 Helping Vendor in their business growth by referrals, testimonials etc.
 Analyzing vendor’s capability by actions, like prototypes or small project implementations before finalizing offshore contracts.
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