reddit

“While the first two areas; Contract and Operational Management are more quantitative and tangible, Relations Management is a qualitative factor. IT and business professionals often struggle with the need for relationship management because anything to do with a relationship is often considered too soft to have any financial impact. Don’t be fooled. Our research shows that 20% to 40% of the value realized from the sourcing contract hinges on good relationship management.


As you read through the factors above, you most likely found yourself answering the questions within the context of your outsourcing relationship. If this is the case, you may have found that your Contract Management, Operational Management and Relationship Management practices could be improved. Don’t feel you are alone if your practices don’t fully stand-up to the best practices test you have just taken. The real question is; are you going to do anything about it and why should you?


Why should you is easy; because if you don’t your sourcing relationship could leave anywhere from 40% to 70% of the value potential on the table. This translates into millions of real dollars not to mention the intangible costs of operational and employee inefficiency on the both the provider and client sides.


It is well worth the investment to take a look at how you are managing your contract, operations and relationship. The rewards are significant.” source...