Outsourcing companies, both local and foreign based have been proactive when it comes to taking on the global business sector as they look for potential clients. Over the years, we have already witnessed how companies belonging in the outsourcing sector of different sizes have sealed contracts and agreements with their respective clients and how they have nurtured these agreements.
Just recently, there was an announcement by outsourcing solutions provider CSC(NYSE:CSC) that it has extended its contract with Safety Insurance Group, a company based in Boston that deals with property and casualty insurance. The work processes at hand would include Information Technology solutions, such as the provision of application and infrastructure services by CSC. The partnership between CSC and Safety Insurance Group started in 1997 and the latter claims that the IT solutions provided by the former have actually helped them drive Safety Insurance Group's homeowner business.
Another company that made an announcement of a contract extension this May wasFirstsource Solutions (NSE:FSL), a company based in India but have global operations facilities across the different continents. The solutions provider that specialize in business process outsourcing has released a statement that Sky, an entertainment and communications company in the United Kingdom, has chosen to extend its contract with the outsourcing company. The customer service management is the solution that Sky has opted to outsource to Firstsource Solutions. Just like the partnership between CSC and Safety Insurance Group, this outsourcing partnership has been present for so many years, roughly around 10 years. The said contract renewal will cause Firstsource to expand its United Kingdom operations into two more cities in Belfast and Cardiff.
It is indeed fascinating to see outsourcing partnership to last for many years and this could be a testament to the idea that outsourcing is helpful in strengthening one's business. There may be instances wherein companies have been unsuccessful in their decisions to outsource, but upon seeing partnerships like those mentioned above, one can probably arrive at a conclusion that companies who were unsuccessful in the past probably missed a thing or two in their deliberation whether they are ready or not. There are many things to consider before outsourcing and we have already mentioned these in a couple of articles that we have published before.
Nurturing of outsourcing partnerships may seem simple at first but one must recognize that in order to be successful, there are a number of things that should be considered. There are different partnerships that would make you become more interested because of the duration of the contract. One of the great factors in keeping a strong outsourcing collaboration would be the reliability of the solutions provider. Reliability could probably be one of the top outsourcing criteria that should be considered by businesses as this will definitely help them strengthen their presence in their respective industries.
The outsourcing industry is definitely miles away from becoming an extinct model because of the benefits and advantages that one can actually reap from seeking a partnership with an outsourcing solutions provider. To add to the benefits, the solutions providers are actually working on their reliability so as to keep their clients satisfied.
Let us know what else do you think adds value to an outsourcing partnership. Share your thoughts in the comments section below!
Author: Jamee C.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.