Outsourcing is everywhere. It has penetrated into virtually every sphere of business and much of personal life.

Whatever the general pros and cons, the most successful and rewarding form of outsourcing is transformational outsourcing involving strategic partnership. The first describes the overall outsourcing experience—it transforms the business—while the second refers to how it’s accomplished—two or more companies partner to achieve their strategic goals).

The crucial action in developing successful, long-term relationships is finding the right partner.

Here are some of the considerations that you may find useful (adapted from the Microsoft recommendations)

1. Companies that seek to benefit from partnering can not be direct competitors. “Know thyself” and explore potential partners for how your competencies relate and compliment theirs, then partner with the companies that are the best fit.
2. Communications are the foundation of a successful relationship, especially in these critical areas:

• financial and accounting practices;
• terms of payment;
• splitting commissions;
• how to divide responsibilities;
• how and how often to communicate;
• the scope of work.

Success requires that expectations on both sides be met, since this ensures the mutual satisfaction and increased trust that permeates the best partnering.

3. Company culture is an important consideration. Knowing your own culture and taking the time to evaluate your potential partners’ culture is the only way to ensure that they are at the least synergistic—incompatible cultures doom projects just as they doom mergers.
4. Start small. Avoid having a mission-critical project as the first partnering effort, rather complete a low-risk project and weigh the results in light of these criteria

• willingness of both partners to have candid conversations about their business plans;
• understanding of each other’s business capabilities;
• adequacy of the preferred communication means and of its frequency;
• qualifications and skill of both the technical and business personnel; and
• financial success for both parties.

Partnering with an offshore company is exciting, rewarding and can enhance your company’s success, but it’s not a silver bullet. Partnering requires a high level of commitment, hard work, and frequent, open communications on both sides to accomplish it.

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