There is no denying that outsourcing is a tool for business growth. Businesses can incorporate outsourcing business activities to another agency as a core in the business model itself, or use it as a tool only when it seems fit. Either way, outsourcing is a fundamental decision made by the management to de-internalize business activities. This is where the role of building trust in outsourcing comes into play.
When business activities are outsourced, many sensitive and crucial internal information may need to be passed on to the outsourcing agency. It’s important to make sure that the agency is dependable with such confidential information. This shows how crucial is to establish a partnership based on trust. Trust is in fact, a crucial foundation of a healthy business relationship.
Simple Yet Crucial Steps to Build Trust
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Background research
Both parties should do background research on each other. It enables asking the right questions just like in a hiring interview related to not only the business and agency respectively but also other important things like the local market, talent pools, business models, types of outsourcing activity, etc. This makes an impression that your interest in doing business with the other party is genuine and trust builds within each other.
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Building interpersonal relationships
Establishing professional relationships only is not sufficient for building trust in outsourcing. The individuals and teams involved closely in business activities should get to know one another personally, and spend quality time outside office hours to build trust and understanding. Enabling this kind of environment is, however, the responsibility of the leaders. Only then, will outsourcing employees and the agency have a feeling of belongingness. Not to forget, with greater emotional connection and involvement comes greater results.
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Trial period
Establishing a trial period can also be an effective trust-building technique. By ‘trial period’ it doesn’t mean checking how the agency or outsourcing employees perform. That’s a different step altogether. Rather, it means, establishing a time frame where the main goal for both parties should be to identify areas of improvement to make the partnership work.
Fluctuations must be expected in a remote work setting and there should be room for addressing this in the first few weeks. Having this option open means feedback is expected readily and both parties get equal opportunities to clarify expectations from each other. As such, criticisms are always perceived as positive and constructive. This sets a tone that your business partner is helping you and makes may for trust to build.
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Establishing objectives
Just like any other business function, outsourcing also needs clear objectives. Establishing Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) are some examples of such objectives. Only after setting the objectives, measures to be implemented for achieving them can be formed. Without these objectives and measures, it is highly likely that expectations of the partnership will not be met and the relationship might not work.
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Effective communication
The importance of communication cannot be stressed enough in outsourcing. Having effective two-way communication during the initial days is even more important than in the latter days. Since there are no contracts or systems that are binding each other at this stage, thorough communication is often missing. Thus, open communication is the key to giving this partnership a proper direction right from the beginning.
To avoid problems in communication due to differences in time zones with outsourcing partners, different mediums of communication must be used. Relying only on video conferencing and in-person meetings may not be feasible at all times. Hence, emails, voice, or instant messages must also be used exceptionally.
When information and updates are delivered at the right time, without having to search for them, it also makes a good impression on your partners. Delayed communication could result in repeated work or wrong decisions, costing both parties time and resources. Therefore, when communication is done right, both parties present themselves as dependable, and trust can be built.
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Having control systems
Control systems refer to check and balance mechanisms that help in supervision and regulation, and can act as a support instrument at times of need. With a control system, every member involved in the partnership will be aware of the guidelines they have to follow, thus reducing the chances of errors while conducting business activities.
Control systems ensure transparent leadership, accountability, responsibility, and ethical practices in any business relationship which is essential in building trust.
Bottom line: Building Trust is A Process
Just because two organizations or professionals of two entities are (planning on) working together, doesn’t mean trust is acquired inherently in this setting. The way trust works in the business world is no different than how it works with human relationships. Neither the business nor the agency can know all about each other right from the start. Hence, building trust takes time and it is a process.
At GoCode Solutions, we incorporate these tools and techniques at all possible levels. We value and nurture our relationships with every partner regardless of the scale or volume of business with them.