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What are the best strategies for managing IT outsourcing relationships as an entry-level professional?

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IT outsourcing is a common practice for many organizations that want to leverage external expertise, reduce costs, and focus on their core competencies. However, managing IT outsourcing relationships can be challenging, especially for entry-level professionals who may lack the experience and skills to communicate effectively, monitor performance, and resolve issues with vendors. In this article, we will share some of the best strategies for managing IT outsourcing relationships as an entry-level professional, based on the following aspects:

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1 Define clear goals and expectations

Before you start working with an IT outsourcing vendor, you need to have a clear understanding of what you want to achieve, how you will measure success, and what are the roles and responsibilities of each party. You should document these goals and expectations in a contract or a service level agreement (SLA), which will serve as the basis for your collaboration and accountability. You should also communicate these goals and expectations to your internal stakeholders, such as your manager, team, and clients, to ensure alignment and transparency.

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James Muritu

Global IT Director @ BURN Manufacturing |MBA |PMP |Prince2 |ScrumMaster
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One of the biggest lessons I learnt from an outsourcing arrangement some years back is the need to conduct a due diligence as early enough around the staffing arrangements by the vendor. It all looks good on paper when you sign the contract only to realize later that the vendor has no staff. Even when they got us staff, they were cheap resources with minimal experience. Second, don't make any assumptions about the vendor. Conduct a physical visit to their offices; whether in country or out country. Lastly, conduct thorough reference checks. Don't engage a vendor who cant provide references.

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2 Establish regular communication channels

Communication is key to building trust and rapport with your IT outsourcing vendor, as well as to monitor progress, provide feedback, and address any issues or concerns. You should establish regular communication channels, such as email, phone, video conferencing, or instant messaging, and schedule frequent meetings or check-ins, depending on the scope and complexity of the project. You should also use a project management tool, such as Asana, Trello, or Jira, to track tasks, deadlines, and deliverables, and to share documents, reports, and updates.

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3 Learn from the vendor's expertise

One of the benefits of IT outsourcing is that you can access the vendor's expertise, knowledge, and best practices, which can help you improve your own skills and performance. You should take advantage of this opportunity by asking questions, seeking feedback, and requesting training or mentoring from the vendor. You should also be open to learning from the vendor's culture, values, and work style, and respect their differences and preferences. By doing so, you can foster a positive and collaborative relationship with the vendor, and enhance your professional development.

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4 Manage risks and challenges

IT outsourcing can also involve some risks and challenges, such as delays, errors, conflicts, or misunderstandings, which can affect the quality and outcome of the project. You should be proactive and prepared to manage these risks and challenges by identifying them early, communicating them clearly, and resolving them quickly. You should also have a contingency plan or a backup vendor in case of emergencies or disruptions. Moreover, you should document and report any incidents or problems that occur, and learn from them to prevent or minimize them in the future.

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5 Evaluate and reward performance

Finally, you should evaluate and reward the performance of your IT outsourcing vendor, based on the goals and expectations that you defined at the beginning of the project. You should use objective and transparent criteria and metrics, such as quality, timeliness, cost, customer satisfaction, and innovation, to measure the vendor's performance. You should also provide constructive and timely feedback, both positive and negative, to help the vendor improve and grow. Additionally, you should recognize and reward the vendor's achievements and contributions, such as by sending a thank-you note, giving a bonus, or offering a referral or testimonial.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Chandrima Bose

"Fueling Customer-Centric Triumph: Elevating Managed Services, Account Management, Sales Strategy, and Customer Success | Cybersecurity Fanatic | BFSI Specialist | Digital Transformational Leader | Passionate Baker
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Clear Roadmap Discussion What it needs very clearly is that recommendations to customer while working with them in their journey . Many times it’s seen vendor acts as an outsourced agency and works transactional what we need to see is how can we partner with customer to make both successfull

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What are the best strategies for managing IT outsourcing relationships as an entry-level professional?

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1 Define clear goals and expectations

2 Establish regular communication channels

3 Learn from the vendor's expertise

4 Manage risks and challenges

5 Evaluate and reward performance

6 Here’s what else to consider

IT Strategy

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What are the best strategies for managing IT outsourcing relationships as an entry-level professional?

1

2

3

4

5

6

1 Define clear goals and expectations

2 Establish regular communication channels

3 Learn from the vendor's expertise

4 Manage risks and challenges

5 Evaluate and reward performance

6 Here’s what else to consider

IT Strategy

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