How to Select a Strategic Outsourcing Partner

April 11, 2010
It's not all about the money.

Imperative to the success of any outsourcing arrangement is selecting the right partner with which to do business. One selection tactic is simply to choose the lowest-cost vendor -- and if all other factors are equal, that may be the best route to go. However, the "other factors" frequently are essential considerations.

When selecting a strategic partner, look for one who has "a vision around improving productivity, transforming processes, as well as providing cost savings," advises Rich Bailey, vice president, communications and business process outsourcing, at Xerox Global Services. He also advises manufacturers to seek partners who:

  • will work closely with the internal team to develop reasonable short-term objectives and also the long-term ideal environment;
  • continuously invest in their technology and services delivery platform;
  • utilize proven management tools and continuous improvement programs, such as Lean Six Sigma; and
  • provide a strong change management and training program for employees.

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About the Author

Jill Jusko

Bio: Jill Jusko is executive editor for IndustryWeek. She has been writing about manufacturing operations leadership for more than 20 years. Her coverage spotlights companies that are in pursuit of world-class results in quality, productivity, cost and other benchmarks by implementing the latest continuous improvement and lean/Six-Sigma strategies. Jill also coordinates IndustryWeek’s Best Plants Awards Program, which annually salutes the leading manufacturing facilities in North America.

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