The National Outsourcing Association organised a well attended and informative masterclass aimed at relationship engagement on Tuesday 5th October.
The masterclass, part of the NOA's life cycle model, was introduced by Board Member, Adrian Quayle, with the aim of providing some helpful advice and case studies on maintaining a positive outsourcing relationship.
Derek Parlour, Head of Commercial, National Rail Enquiries, gave an insight on their transition from being a single sourced organisation to a full multi-sourcing model with risk aligned with control and capability.
Mr Parlour said: “You need to manage cooperation, suppliers come to us and we work together in partnership. You have to spend time and manage the relationship as it is vital for success, innovation days can help.”
National Rail Enquiries found a single sourced model expensive, slow to change and all of the risk was put on the supplier. A multi-sourced model gave them numerous benefits such as the enthusiasm and knowledge of specialists, shorter contracts with agreed exit clauses and risks were shared which allowed the supplier to be feel relaxed about changes.
Iain Simmons, Senior Associate, Reynolds Porter Chamberlain LLP, is an experienced outsourcing lawyer and gave some advice on the importance of getting the contract right.
“One trend we are seeing is that customers want more detail than less in their contracts. Clear contracts avoid disputes. Focusing on the contract before it is delivered results in all parties knowing what to expect and are in agreement with no surprises. Disputes are obviously bad for business.”
From the masterclass, it was established that clear roles and responsibilities are essential in maintaining a positive relationship. A lack of the bigger picture can also lead to a misalignment of expectations. Innovation and brainstorming days are some ways in which clients proactively manage their relationship with their suppliers.
Sanjay Pritam, Partner, Reynolds Porter Chamberlain LLP, has many years of experience advising companies in industrial, media and insurance sectors on a broad range of commercial contract issues.
Mr Pritam said: “Relationships are fundamental to NOA success. A strong contract is a great tool for smooth outsourcing. Pricing, scope and legal risks are all highly integrated. One change will affect the others therefore joined up thinking along with a balanced contract is key for strong effective relationships.”
Adrian Quayle concluded the masterclass with the announcement of the British Standard on Collaborative Business Relationships (BS11000), to be released later in October. BS11000 is a voluntary British Standard to support collaborative business partnering and is the first milestone in the advancement of an International aka ISO Standard.
