Outsourcing: Perception, Performance and Relationship Management

A very interesting report from MooD International  on Outsourcing gets coverage in Supply Management.

http://www.moodinternational.com/news/stateofrelations.html

The report identifies relationship development and maintenance as key to the positive or negative perception of the service.  Key to the issue of Outsourcing is understanding the drivers of the decision to Outsource and the maturity of the organisation outsourcing the activity.

An interesting point that MooD make is the question of decision making by the service provider; this specific issue is an absolute indicator of the Outsourcer's capability and reasons.  Strict cost adherence and a less than comprehensive understanding of the business will lead to a contract that does not allow for the service provider to deviate from a list of activities.

The ability to capitalise on opportunities identified through effective MI (MooD's core business) is an indication of how mature an organisation who has outsourced truly is.

In summary, a good report and well worth the time to read.

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