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Outsourcing Is About The Relationship

Companies and organizations are outsourcing because it makes sound financial sense for the firm. They need to keep that focus in front of them at all times. They want access to the right talent at the right time at the right price. The most important factors in a successful outsourcing contract are finding a firm that understands the technology, the business, and the communications.

Outsourcing is about the relationship. 50% of all outsourcing relationships fail because the outsourcer understands the technology, but not the business. Communication is a two way street and is the most critical factor in making a relationship work. In managing the relationship, 60 percent of problems are due to communication. Communication gaps can arise from a lack of understanding of the customer's business.

The outsourced contractor’s skills will be pretty solid in most cases but what's usually missing is a sense of the mission of the company and that's not something that people can learn when they're remotely located. The right outsource solution needs to have a passion for the project to be successful.

81 percent of companies outsource at least one IT activity, and these organizations are devoting a larger share of their IT budgets to these services than they did in 2006. Most IT executives feel they are successful at outsourcing, so few bring all IT activities in-house. Also, the most frequently outsourced IT activities are systems development and integration

The Group Members International number one priority is to understand your technology, your business, and how to communicate.