Your outsourced IT vendor is falling short on performance targets. How will you address the ongoing issue?
When your IT vendor isn't meeting expectations, it's time to strategize for improvement. Consider these steps:
How do you ensure your vendors keep up with your company's needs?
Your outsourced IT vendor is falling short on performance targets. How will you address the ongoing issue?
When your IT vendor isn't meeting expectations, it's time to strategize for improvement. Consider these steps:
How do you ensure your vendors keep up with your company's needs?
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Issues with any vendor whether it is with your outsourced vendor, SI partner, software or hardware vendor is a part of the journey. The solution in my mind is similar if not just the same. 1. Did you treat the relationship as a transaction or are you investing in the relationship? If former then spend time building the relationship top down and bottoms up. Both are important. 2. Go into the details of the engagement not just the dashboard or a bunch of KPI’s. Discuss the root cause(s) and read in between the lines. 3. Jointly come up with a plan to fix them. I say jointly as there might be things you and your team could be doing differently with the vendors.
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We work a lot with other IT/Tech Services vendors and have found that as long as we have open lines of communication when things go wrong (and let's be honest, they do!), it is far easier to resolve because you have made the time to build the relationship, it of courses works both ways and it is important to work with outsourced IT Vendors that share your values and put equal effort to build the relationship, that's where trust comes from.
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At Techno Tackle, we faced similar challenges when our offshore team worked tirelessly while our onshore staff moved at a different pace. We found a real solution: establishing a clear frequency of communication. Daily updates on planned tasks, along with end-of-day status reports (completed, in progress, or yet to start—with transparent reasons), became our norm. We scheduled daily stand-up calls at the same time, ensuring participation and setting a clear agenda. This allowed clients to easily track our progress. We also updated everything in our group, and if issues arose, we took calls to resolve them. Weekly discussions on task statuses kept everyone aligned and accountable, transforming obstacles into a seamless collaboration.
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I faced a similar challenge where the vendor consistently missed targets. We held a review meeting to pinpoint the underlying issues, such as unclear expectations and resource limitations. After identifying the problem, we redefined performance targets and provided additional training, which improved performance by 30%. Regular follow-up meetings and performance tracking ensured accountability.
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1. Set clear performance metrics in an SLA. 2. Hold regular performance reviews. 3. Keep communication open and transparent. 4. Use escalation processes for persistent issues. 5. Encourage innovation and flexibility. 6. Reward good performance. 7. Regularly assess long-term fit
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It's important to differentiate between 'expectations' and 'obligations'. Expectations in transformation projects can be aspirational - and contracts may include tiered performance measures, or mechanisms to improve performance over time. It's vital to detail requirements clearly, including minimum performance obligations. If they aren't being met a root cause analysis should demonstrate why. General governance should include regular communication about performance, service issues and remedial activity. If repeat service issues occur, do enforce your remedies. They will have been negotiated to drive compliance. But be mindful of deep unforeseen issues and a possible need for change - suppliers need incentives, as well as penalties.
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When facing performance issues with an outsourced IT vendor, I focus on collaboration and transparency. First, I would assess the specific areas where they are falling short and gather feedback from our teams to understand the impact on operations. Next, I’d have an open conversation with the vendor, using data to clarify our concerns and expectations. Together, we can revise performance targets to ensure they align with our needs. I’d implement regular reviews to monitor progress and encourage ongoing communication. If improvements aren’t made, we would consider alternatives that better meet our requirements. Ultimately, the goal is to ensure effective IT support that aligns with our business objectives.
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If the issue persists despite proper contracts & SLAs, it makes little sense to try to control the outsourcing partner's employees or subcontractors through micro-management or micro-teaching The root cause is usually incompetence or conflicts of interest among the key personnel who should be carrying out the orchestrating of their staff That is not the task of a customer! Maybe wrong priorities had been set internally or the RoI approach is too aggressive, or key accounters have just promised too much without involving operations teams as a means of 4-eye principles before signing contracts In these cases, a respectful escalation to the vendor's board is necessary after collecting sound evidence in order not to waste more money or time
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At SilverXis Inc, We're committed to keeping a close eye on their performance and will introduce a structured feedback loop to address any concerns quickly. Here’s what I have in mind for our action plan: Performance Review: We’ll kick things off with a thorough analysis of the current performance metrics to get a clear picture of where we stand. Collaborative Improvement: Let’s arrange a meeting with the vendor. This will give us a chance to openly discuss our expectations and brainstorm some effective strategies for improvement. Progress Monitoring: To ensure we’re on track, we’ll set up regular check-ins moving forward. This way, we can keep tabs on our targets and make any necessary adjustments along the way.
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I just went through this with one of my outsourced vendors. After many discussions and attempts to resolve the issue, I fired his group. He came back and offered free services for a month, and we worked out benchmarks, regular communications and such. That's where it stands now. We'll see how it goes...
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