Building trust through transparency in IT outsourcing

Building trust through transparency in IT outsourcing

Trust plays an important role in IT outsourcing. Reputation and brand image are what show on the outside but building a trusting outsourcing relationship takes more than that. Open communication between all parties and visibility into each other’s processes, decision-making, and progress builds trust.

In this article, I will share thoughts on the role of transparency in cultivating trust within IT outsourcing relationships, highlighting industry knowledge, expectation management, and open communication.

Transparency about supply chains

Many challenges in IT outsourcing stem from poor transparency. Dishonesty at an early stage of negotiations between a client and an IT service provider often shows up as exaggerating or hiding information from the other party.

A common issue involves IT service providers subcontracting talent from elsewhere and presenting them to the client as their employees (a.k.a. white labeling) in an attempt to conceal complex supply chains.

The reality is that IT supply chains are often complex, and it is not a one-sided issue. While end clients prefer having few to no middlemen involved, professional IT buyers know that finding talent with demanding requirements is difficult for everyone. Acknowledging the complexity of IT sourcing helps to understand the importance of transparency and why it shouldn’t be seen as a threat.

The fact that our industry is well-networked is not a bad thing. Partnering up with other IT service providers offers numerous advantages, including faster project initiation, access to specialized expertise, and mitigation of risks. Embracing the connectedness of our industry and openly discussing supply chains shows professionalism and trust, paving the way for more efficient and successful IT outsourcing.

Managing expectations

As discussed, transparency about supply chains is crucial, and in a way, the bare minimum to establishing a trusting business relationship. The next step in ensuring successful IT outsourcing and building trust is expectation management.

Particularly from the client's perspective, it is important to define the project scope, deliverables, timeline, budget, and quality standards of the project. Outlining the role and responsibilities of the outsourced IT professional helps in effectively communicating expectations, reducing the potential for misunderstandings and conflicts.

And as IT outsourcing is never a one-sided business, also the IT service provider needs to take accountability in managing the client’s expectations. Everyone prefers honesty over big promises with letdowns.

Open communication

The need for transparency doesn’t end at sealing the deal. To ensure successful cooperation and delivery of IT services, consistent and open communication is the key. Communicating regularly to keep all parties informed, providing feedback, addressing issues head-to-head, and aligning expectations along the way builds trust.

East’s commitment to transparency

East is a matchmaker between Nordic and Eastern European companies, finding culturally and technically fitting outsourced IT talent. To connect companies and build lasting relationships, transparency, and trust are integral. This is why we prioritize having all agreements in place and getting to know the companies and people we work with.

Key takeaways

Trust in IT outsourcing is not only a byproduct of reputation but rather a conscious effort in transparency and communication. Though opening up about supply chain complexities or giving your IT partner a reality check may seem daunting, deeper industry understanding reveals the benefits of transparency.

Here are my top takeaways on how to build trust and embrace transparency in IT outsourcing:

1. Shift mindset on supply chain transparency

Recognizing the intricacies of IT sourcing reveals why hiding complexity and collaboration in supply chains isn’t worthwhile. Embracing industry interconnectedness offers various benefits, such as faster project initiation, access to specialized expertise, and mitigation of risks.

2. Prioritize transparency

Open and honest communication regarding supply chains, expectations, and challenges lays the groundwork for trust and fosters effective collaboration.

3. Proactively manage expectations

Defining project scope, timelines, budgets, and quality standards upfront is crucial. Both clients and service providers should commit to realistic goals and uphold accountability for meeting commitments.

4. Foster open communication

Consistent and transparent communication is crucial throughout the outsourcing journey. Updates, constructive feedback, and prompt issue resolution are vital for nurturing trust and ensuring alignment among all parties.

Head to East’s website to read more about our services https://east.fi/.