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February Seen As The Month Of Partnerships

|Includes:Dollar General Corporation (DG), G

Looking for that one partner may be quite tricky as there are so many things to take into consideration. There is the selection process, which spans over a period of time and sometimes if this partnership fails, you test your luck by doing things on your own, but sooner or later you will still find the need for a partner and you go on a search for the right one. Once you've found the one, the settlement of terms and meeting halfway to adjust to each party's demands happens. And lastly, there is final stage which is the agreement. From this point onwards, it now lies on how you will take care of your relationship. It may sound like the topic of marriage or a romantic relationship is on the way, but it is actually outsourcing that is the main topic of this article. Well, it could be said that the relationship between outsourcing companies and businesses or agencies may be comparable to a marriage; after all, both are considered as partnerships.

In selecting the right outsourcing partner for your company may be tough, and there could be no fixed set of criteria available when making the big decision as to whom you would outsource your operational tasks. This is because there are different requirements needed by each company. Also, each outsourcing partnership is different despite the similarity in the nature of the task. But there is one thing that we have noticed when it comes to choosing an outsourcing partner, and this is you always pick the trusted and preferredservice provider.

On February 8, 2012, business process and IT solutions provider Genpact Ltd. (NYSE:G) made an announcement that it is to provide IT help desk support to general merchandise retailer Dollar General Corporation (NYSE:DG). The announcement was made a month later than the period in which the outsourcing relationship has begun, which was on January 1, 2012. Both Genpact Ltd. and Dollar General Corporation have agreed that the former will be providing services that will ensure the efficiency of the latter's IT help desk operations.

However, on another aspect of collaborations in the outsourcing industry, it is not limited to providing services and solutions to business or government offices. Another kind of partnership in this particular field is between two solutions providers, and this is usually to come together to improve their service offerings. Take into account the recent announcement made by Mahindra Satyam. In the press statement released by Mahindra Satyam last February 9, 2012, it mentions that they have acquired a strategic stake in Dion Global Solutions (BSE:526927) that is driven by the vision of "providing new innovative business focused solutions for all tiers of the financial services industry."

Outsourcing companies may choose to collaborate with another outsourcing company to create new solutions, improve their services, or to reach out to a different market, but there is always the driving factor that they are entering this alliance to improve their current status. As for the other aspect of partnership in this field, outsourcing contracts with businesses may have an expiration, unlike marriage, but it is still driven by the intention of improving the efficiency of the other party.

Author: Jamee C.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: DG, G