Anna Frazzetto's Blog

Digital Innovations and Technology Solutions

Outsourcing: It's All About People

Where are outsourcing deals going wrong? According to a new survey from KPMG, it's not because service levels are not being met. It's because relationships are breaking down. In Computerworld's recent summary of the survey titled, "Survey: Failed outsourcing deals blamed on people, not SLAs," the fact that outsourcing is a people business becomes quickly apparent.

The KPMG survey found that 60% of respondents (who were business leaders and managers representing over 650 businesses from more than 32 countries) say that "problems with their outsourcing provider are almost always people-related." The message is that you can have air-tight contacts and rigid service-level agreements on any and every outsourcing solution but, if you don't have outstanding, responsive people managing the account and skilled, thoughtful people delivering the services, outsourcing will fail.

That may sound like a no-brainer but again and again this is where outsourcing fails. A business that is trusting part of its operations to another company needs constant information, forthright transparency and proactive communication. This is the hard work and the "exceed expectations" side of outsourcing. It is also where a solution provider can distinguish itself as a partner and vendor of choice. Great outsourcing service must include world-class customer service--communication, information, responsiveness and flexibility. They are the business basics that today are deciding the success or failure of outsourcing contracts worldwide.