The Importance Of Outsourcing Organizations

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According to Sahakian (1998), corporate alliance is where two or more organizations join together, for instance, in order to share risks or exchange resources. The particular alliance might take different forms such as a relationship with a service provider, an alliance with a main customer, among others. However, Dent (2000) argued that there should not be any misunderstanding concerning the significance of what is described as a healthy and effective partnership. This is because this is usually critical for the success of every organization in today’s business environment. Dent (2000) continued that when a particular partnership works, it usually produces what is described as a synergistic multiplication of resources, energies, and fortunes. …show more content…

(2013), when a particular organization decides to outsource activities such as HR activities, it needs to begin searching for a particular vendor/service provider that is willing to provide the particular outsourcing service at what is described as at a low cost without giving up on quality. Nonetheless, Suhasini et al. (2013) stated that there are other factors that a particular organization needs to keep in mind in order to preserve the outsourcing relationship with the service provider. This is because outsourcing is usually described as a long-term relationship between organizations, which is synonymous with a partnership relationship between the particular outsourcing organization and its service provider. As a result, the following factors might be considered by a particular outsourcing organization in its selection of a particular service …show more content…

Integrity: This is where a particular outsourcing organization needs to have a relationship based on trust with its service provider. This is because an outsourcing organization tends to share what is described relevant data with its service provider. Thus, there needs to be a trusting relationship, in that, the particular service provider is not expected to share confidential information with another organization without the particular outsourcing organization’s permission to do so (Suhasini et al., 2013).
3. Cultural fit: This is where cultural compatibility is important to maintain the partnership relationship between a particular outsourcing organization and its service provider. In essence, both organizations need to have similar beliefs and values in order to have a long-term relationship (Suhasini et al., 2013).
Finally, according to Suhasini et al. (2013), a particular outsourcing organization might also decide to manage its outsourcing relationship by hiring a specialist, who is described as good at managing the outsourcing relationship. Suhasini et al. (2013) explained that the specialist is expected to enhance and nurture the relationship between the particular outsourcing organization and its service provider over time. Consequently, the partnership relationship will be one that fosters a culture of knowledge sharing and shared

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