Great outsourcing projects are true partnerships. It’s an oversimplification, but customers win because they get access to far more capabilities than they can support from their internal resources while outsourcing providers carefully aggregate and manage resources so they share in the rewards of success. Do it well and there’s the opportunity to deepen the relationship.
Gen-i has enjoyed many successful outsourcing projects. We’ve also had ones that were difficult and unproductive. It’s these ones that often teach you the most.
We have learnt that if a customer does not want to work as a partner then outsourcing is not going to go well.
Some customers focus solely on commercial terms. They manage a contract as if they are buying a simple widget. Outsourcing only works when both parties focus on business outcomes and are committed to improving those outcomes.
We have learnt to walk away from customers who want to treat outsourcing ICT as if it’s a simple commercial contract and not a partnership that needs commitment and maturity from both parties. Now, we don’t like walking away from a prospective customer but sometimes it is the right decision. It turns out the customer isn’t always right.
So what makes a good outsourcing customer? It’s someone who realises that relationships and governance take work and the effort will pay huge dividends.
Think of outsourcing as a strategy, not a tactic. The key is to approach the deal as a partner and look for an arrangement where both parties have an incentive to deliver the best outcomes.
Hey Jim,
So how best do we work with Gen-I to get the best out of a potential partnership? Is there still scope to work on the Strategic Partnering framework promoted by Tony Lendrum that Gen-I used to engage with customers on? I agree that it is important to be jointly focussed on those outcomes which deliver merit to both parties, however that does not start with inexperience on both sides and needs to be driven through a facilitated process, so that a deeper level of understanding can be garnered first and foremost, outsourcing must not be viewed as a solution per se but a tool that helps deliver an agreed and tangible outcome.
Regards Darryl M ex Gen-I Sales Manager and now IT Leadership at a Gen-I customer.
Hi Darryl
I agree with you that inexperience can hamper developing a partnership engagement model. So we do use the Lendrum methodology and often use Tony Lendrum himself to facilitate or use our Academy experts to facilitate sessions. The Lendrum method is, however, not the only method and if a customer has an established methodology they like to use we would work with them and adapt our processes. The key is trust, honest and a mutual desire to progress the relationship.