In our ongoing blog series on outsourcing, we’ve covered the art of strategic outsourcing and how to build an efficient outsourcing infrastructure.
With these resources, you’re well prepared to determine what and when to outsource, select a trustworthy partner, and conduct due diligence.
However, once you’ve chosen your vendor, you’re likely wondering how you can ensure that this new outsourcing relationship will grow into a long and successful partnership.
In this blog, we'll explore key strategies for building and managing successful outsourcing relationships.
Setting Standards from the Start
The foundation of a successful outsourcing relationship is built on clear expectations.
Contractual agreements are one way of ensuring that an outsourcing provider adheres to a high standard of performance. When creating such an agreement, ensure each party’s responsibilities are clearly defined and agreed to and that a plan and remedies for non-compliance are in place. This ensures both parties are aligned on the terms and objectives of the partnership.
Another measure of performance you can set from the start is Key Performance Indicators (KPIs). By defining measurable goals and a system for tracking performance, you can view your provider’s delivery empirically and make data-driven decisions to improve and grow the partnership.
Maintaining Open Lines of Communication
Maintaining a high level of communication and transparency with your provider is crucial.
As soon as the contract is signed (or sooner), ask to meet your key outsourcing contacts and establish how your teams will operate together. In this conversation, encourage open and honest communication between both teams – a culture where questions can be asked freely and concerns can be raised without fear.
From there, you will want to get into the details of how you communicate on a daily, weekly, and monthly basis.
What are your preferred communication channels? How often will you meet to discuss status, address challenges, and share updates? What can you expect in terms of reporting on progress and areas for improvement? Will the vendor conduct annual or bi-annual performance reviews to assess the overall partnership?
Establishing clear and consistent communication with your outsourcing team early on sets the tone for your ongoing relationship and ensures any feedback or concerns are heard.
Including Outsourcing Relationships in Business Strategy Reviews
In addition to scheduled reviews with your vendor, be sure to consider outsourcing partnerships as part of your overall business strategy.
Take this time to reflect on whether your providers continue to fulfill all obligations, maintain high-quality service standards, and prioritize your interests.
This is also a great opportunity to evaluate whether an outsourcing relationship needs to be scaled up or down to meet the evolving needs of the firm. Any quality provider should have the breadth and depth of services and the flexibility in their offerings to accommodate your firm’s needs as your business changes.
By regularly checking in and evaluating the status of your partnerships as part of your overall strategy, your firm can remain agile in its outsourcing relationships.
Your Investment Firm's Outsourcing Advantage
Successful outsourcing isn't a one-time decision; it's an ongoing strategic partnership. By prioritizing clear expectations, open communication, and dedicated oversight, you can build strong, long-lasting provider relationships that drive efficiency and firm success.
If you’re looking to enhance your firm’s outsourcing partnerships, our SS&C experts can guide you through the entire process, from the initial assessment to ongoing relationship management. Let's work together to build a successful outsourcing strategy that propels your firm forward.
Reach out to speak to an outsourcing expert today, or learn more about building a successful outsourcing strategy in our guide, Partnering for Success: The Art of Strategic Outsourcing.
