IT Outsourcing: Making Contracts Last

Feb 4
10:42

2013

Alleli Aspili

Alleli Aspili

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

There are principles that IT outsourcing companies should apply to make contracts last. However, technical factors don’t just complete client satisfaction.

mediaimage

A lot of BPO companies,IT Outsourcing: Making Contracts Last Articles especially those that provide IT outsourcing services, deal with more contracts today than before. It is due to the outstanding and tremendous demand seen from the last few years, specifically in 2012, and from the huge increase of the available service providers from around the globe as well. These demands are also a product of the desire of certain companies to incessantly cut expenses, improve performance and have access to new technology, which are basically three of the many benefits of IT outsourcing.

Creating an outsourcing contract doesn’t just happen in a blink of an eye. It requires proper, and probably, more planning, entrustment and implementation than a normal business contract. And if we’re dealing with an IT outsourcing contract, then it means that there are more aspects to take into consideration. Those aspects include deliverables, information security and confidentiality, transfer of assets, ownership of intellectual property rights, dispute resolution, warranty and liability.

A good contract is one of the keys in making a professional relationship last. One of the known reasons why outsourcing contracts are created is because it becomes the only mechanism of ensuring that the expectations of the clients are met. As a result, clients who see greater and improved results based from the contracts tend to pursue their relationships with their outsourcing partners and continue or add more outsourcing projects in the future merely because they were satisfied.

Technical factors aren’t just the ones that complete successful and long-lasting outsourcing contracts and projects, ideal principles polish them as well. There are common values that shouldn’t be absent before and during the implementation of such outsourcing contracts and projects – excellent communication, being trustworthy and, flexibility. BPO companies that provide IT outsourcing services focus more in becoming the best partner for they clients and to be successful with that, they should excel in those three values.

There’s this great example of a long-lasting IT outsourcing relationship from Oakwood Healthcare and CareTech Solutions. Last November, their contract has been renewed and continued to another five years. Considering the fact that a new service has also been added to this contract, one can truly say that CareTech Solutions, as a BPO company, has maintained its flexibility, trustworthiness, and communication to its client, Oakwood Healthcare, since 1998.

This can also be an encouragement for many BPO companies to do their best in maintaining their clients trust. And, on the other way around, companies that outsource their IT should also do the same. Outsourcing has always been a win-win situation for many, especially when contracts are outlined well, plans are carried out at its best and the processes and projects are sustained.

Can you add more principles that both parties should apply in making an IT outsourcing contract last?