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Outsourcing

How do you resist the urge to reach for the contract, with full confidence that the dispute will have a win-win outcome and the business relationship will be renewable?

At Issue
Outsourcers rely on customers to accept their value proposition prior to relinquishing control of their vital business processes. Service level performance is usually reported using a periodic Balanced Scorecard dashboard. For accuracy, relevance, completeness and timeliness of the information, customers often rely excessively on their personal relationships with outsourcer representatives. History has shown that when these relationships become strained and one party reaches for the contract, it typically signals the end of the business relationship.

Solution
Trust Enablement™ reduces reliance on personal relationships for establishing and maintaining confidence in the performance of the outsourcer. Trust Enabling™ systems enhance the level of confidence customers have in Balanced Scorecard reporting by providing objective evidence about the accuracy, relevance, completeness and timeliness of source information. The number of contract period extensions and the value of subsequent business measure the effectiveness of Trust Enablement™.

Benefit
Trust Enabled™ operations also provide new outsourcing prospects with increased confidence in the ultimate success of the prospective business relationship, which accelerates the sales cycle and increases the value of the first contract. In other words, Trust Enablement™ helps to increase the value and duration of the outsourcing business relationship.




 


Sources of Trust

Authoritative Sources

Everest Group "Trust is the new trend... once you begin outsourcing core activities, there's not enough money in the world to save if TRUST isn't a major part of the offering." Victor Millar, in his article The Trust Factor for Everest Partners, L.P. Local Copy

"You need to have trust in your relationship.... It's sort of ironic for a lawyer to say that, but it's true. You need to have that, because it is almost impossible to write an agreement to cover every situation.", According to Ciecimirski of Pricewaterhouse Coopers in an Everest Partners article, entitled Successful BPO Contract Renegotiation - The Importance of Trust and Flexibility. Local Copy


METAgroup "By 2005, 25 percent of outsourced ITOs will build trust with outsourcing vendors as a result of vendors leveraging technology to enable
business strategies, establishing operations excellence best practices, and automating and integrating operational processes.
", According to Wissam Raffoul of Meta Group in a ZDNet article, entitled The road to outsourcing success.
Local Copy

Experiential Sources

Our Experiences:

Chelsea Consulting "Most outsourcing deals fail, and are subsequently canceled, because the person-to-person relationships, the trust, breaks down between the client and the outsourcing services provider." According to Darrel Berry, Partner at Chelsea Consulting and Alex Todd, President of Trust Enabling Strategies in their co-authored article entitled "Why Outsourcing Deals Fail". See draft of article.



 

 

 

 

 

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