Five Personality Types Dominate Outsourcing Relationships.
This article illuminates an enigma revealed by a recent survey by Compass Management Consulting – while business process outsourcing continues to grow and dominate strategic decision-making, “contractual relationships” with outsourcing partners disappoint nearly 60% of the time. Research further indicates that 80% of contracts that fail, fail due to poor governance, with problems ranging from a shortage of management skills to a lack of proactive behavior by outsourcing partners. These “soft” intangible issues, such as office etiquette, are often overlooked during sourcing and negotiations, but need to be carefully addressed.
The article notes that companies tend to exhibit five primary personality types when dealing with their outsourcing partners, only one of which forms the basis of a strong relationship necessary for success:
- The Curtain Twitcher – Nosy but not interfering, they complain to colleagues about their service-providers’ short-comings but don’t address the issue head-on.
- The Trend Spotter – A company’s internal team that outsource because it is the current trend in business service management and because there is pressure from above to pursue offshore solutions.
- The Noisy Neighbor – An overzealous micromanager who prevents the service provider from proceeding with an obsession with minute detail and “analysis paralysis.”
- The Hedge Builder – Who sets up a contract but expects not to get personally involved under the misguided belief that outsourcing cures all ills.
- The Good Neighbor – Representing only 20% of outsourcing deals, he/she understands that a multi-layered arrangement between client and server is needed at the strategic, tactical and operational levels, with training provided to service provider personnel and cultural differences identified and bridged.
The article provides readers with tactics to help remedy the first four personality types as well as steps to take that will enhance the results achievable with the fifth personality type.