Offshore Outsourcing Services Aggregator: The Trust Factor

April 27, 2016 1:17 pm | Updated 5 months ago.

The Current Environment: While a lot of care is taken by most customers in selecting the IT offshore vendors, frequently with help from leading consulting companies like Gartner and others, it is the trust between the customer and the vendors, sometimes based on relationship developed over a long period of time, that ultimately decides the quantum and nature of work outsourced by the customer to the offshore vendor. The factors that play a significant role in this development of trust based on relationship over a period of time between the customer and the offshore vendors are:

  1. Management Commitment: What level of attention is the engagement getting from the senior management of the company, especially during critical phases of the engagement?
  2. Quality and timeliness of deliverables: While the management commitment is very reassuring, ultimately it is the quality and timeliness of the deliverables that plays a critical role in developing the trust of the customer in the capability of the offshore IT vendor.
  3. Capability and commitment of the team dedicated to the engagement: While some customers look for seniority, most customers want smart and committed members of the team. The ability of the offshore vendor to put together such a team and retain the team members, and hence the client specific knowledge, for the period desired by the customer, goes a long way in building trust.
  4. Support provided to the engagement team from experts that are not part of the team: No engagement team can be fully self-sufficient with skills across multiple technologies and knowledge across multiple domains. From time to time, the engagement team may need external help in specific areas and the speed with which such help is provided from specialized technology or domain practices helps in building the trust of the customer in capabilities of the vendor.
  5. Crisis management: When an engagement runs into a crisis, whether due to the fault of the vendor or the fault of the client or simply due to nature of the business, all of the above parameters need to come into play to resolve the crisis in an expeditious manner. The steps taken by a vendor to avoid a crisis situation from arising in the first place, and equally importantly the steps taken to manage a crisis situation helps building trust.
  6. Understanding customer’ business and planning for the future : This possibly is one of the most critical factors in building the trust between the customer and the vendor, when the vendor makes investments in understanding the nuances and priorities of customer’ business and shows initiatives on steps being taken to plan for the future and help the customer in enabling their business growth.

Given the current scenario, it is possibly prudent to say that it takes years of relationship to build trust between the customer and the vendor. However, given that over 50% of outsourcing engagements do not work out the first time and over 30% of outsourcing engagements are not renewed upon expiration of the contract period, is there adequate time or energy on part of both the customers and the vendors in today’ digital age to continue to build new relationships?

 The Aggregator platform plays a crucial role in building implicit trust between the customer and the vendor by its pre-assessment and continuous feedback processes. With all the ratings, both pre-assessment and performance in past projects, being available to the potential buyers and sellers, there is a sincere attempt by both parties for the engagement to work.  This has been clearly demonstrated by the aggregator platforms like Uber, Airbnb, and many others and D2E Consulting’ aggregator platform for IT offshore outsourcing services attempts to do the same.