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?
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.
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.
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.
"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.
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,
BPO Contract Renegotiation - The Importance of Trust
"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.
"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".
draft of article.