How to excel at outsourcing
The underlying problem is that the relationship feels unnatural. Clients ask “Why should I pay a service provider millions of dollars and then bend over backwards to manage them Why can’t they do it right without my help”
Here is the little-known secret about this business: outsourcing—at its most fundamental level—is a human endeavor. Like all other relationships, it is a product of our ability to communicate and deliver on our promises. While the industry obsesses about speeds and feeds, staffing levels, service levels, accuracy, exit clauses and indemnity, what we should all really be talking about is the human behavior that makes a healthy partnership work (or not).
In essence, we are applying the 80-20 rule—in reverse! We pay attention to the objective factors, which are easy to measure and apply, while we shy away from working on the human part of the equation because it is so difficult to quantify. As a result, we end up focusing on merely 20 percent of what we need to be doing to make the relationship successful.
Most of us already understand how this principle works in other parts of our lives. A pleasant smile and some friendly chit-chat with the flight attendant are more likely to get you that free drink; we all know the restaurant server pays special attention to the table that says “please” and “thank you.” Most of us were taught this simple rule when growing up: treat others how you would like to be treated. So why do so few of us apply it in our outsourcing relationships
Here are a few reasons:
The good news is that, with each subsequent generation of outsourcing, #2 through #4 will get easier. The bad news is that, as an industry, we are deluded into thinking we buy and sell technical or functional solutions, when the fact is we are buying and selling human ones. The best advice I can give clients is to pick the team they want to work with for the next few years. All the rest will fall into place if you have the right relationship.
Having established the humanness of outsourcing, I will address in my next post what buyers can do to increase their chances of success in this very emotional, political and subjective industry. Until then, I challenge you to practice exceptional kindness with your client and/or service provider and see if things don’t get better almost immediately!