Outsource Magazine Issue 29 - (Page 98)

TOP TEN RELATIONSHIP MANAGEMENT This issue, our Top Ten series visits a topic at the heart of outsourcing: relationship management and good governance… Frank D’Andrea, Hydro One Frank D’Andrea is Director, Outsourcing Services at Hydro One Inc. in Toronto, accountable for the company’s outsourcing agreements, and providing advice and direction to company Lines of Business that receive services from outsourcers. I 98 n the world of outsourcing and relationship management, nomenclature is a peculiar obsession. As buyers of services, we struggle with whether we consider our provider a “partner” or a “vendor.” Behavioural theory would then suggest how we manage the relationship should be accordingly different: it’s either black or white. No doubt some alliances clearly lend themselves to one particular view or the other – pure transactional relationships can be treated as being vendor-like, whereas others, where there’s equal skin in the game, can be viewed as a partnership. Either way, outsourcing doesn’t absolve your accountabilities for the desired objectives and outcomes. The reality with outsourcing arrangements is that there are many shades of grey when it comes to how the contract, and even more so how the provider, should be “managed”. Nomenclature is somewhat moot. To achieve good governance and effective relationship management, it is important to keep in mind some key fundamentals to success. Don’t disregard the obvious: objectives are different Clients seek reduced costs and better service, while providers are profit-oriented. Therein lies the tension, but be cognisant of it. Issues will arise where limits will be reached before resolution can take place. For example, how far is the client willing to forego its customer experience? Are the provider’s margins fair in the current marketplace? Think of these situations as a business transaction. Good governance 1 "When you're in a relationship and its good, even if nothing else in your life is right, you feel like your whole world is complete." – Keith Sweat ●● ● www.outsourcemagazine.co.uk http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 29

Call Me Maybe?
Optimising Your supplier Portfolio
Application Development Outsourcing
Are You Fat?
The Future of BPO
Digital by Default
The Face of Finance
Procuring Excellence
The Importance of Being Secure
NOA Round-Up
Steering the Flow
Changing Shape
Legal Transformation
Getting to the Real-Life Win-Win
What’s the Point of Outsourcing?
The Legal View
Top Ten
NelsonHall Round-Up
The Oral Review
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 29