6 Subtle Signs That Your Outsourcing Vendor May Not Be Aligned With Your Business Goals

Outsourcing vendors are supposed to be strategic partners, working in tandem with their clients to achieve business goals.  However, sometimes outsourcing vendors can become more focused on their own interests rather than those of their clients.  This can lead to a misalignment of business goals, resulting in poor performance, missed targets, and ultimately, a failed partnership.

In this blog, we’ll explore the top six signs that your outsourcing vendor may not be aligned with your business goals, and provide solutions to help address each of them.

Sign 1: Poor Communication

One of the most significant indicators of a misaligned partnership is poor communication.  When there is a lack of open communication, misunderstandings can arise, expectations may not be met, and goals may not be achieved.  Another behavior to be aware of under this category is any intentional or unintentional communication by vendor representatives to divide relevant client leadership, staff, and or departments for the sake of carrying out decisions or tasks which heavily favor the vendor.  Project information or personnel issues shared  with client leadership in private can sometimes create division among the client team. 

Solution: Regular Check-Ins

Establish regular check-ins with your outsourcing vendor to ensure that lines of communication remain open and occur in a manner which promotes cohesiveness amongst the relevant client members.  These check-ins can provide an opportunity to discuss any concerns or issues and work together to find solutions.  It’s important to establish a two-way dialogue to encourage transparency and build trust, and insist that all discussions regarding project or personnel concerns include all relevant parties so that a complete and accurate picture would be formed to determine the best course of action.

Sign 2: Failure to Meet Deadlines

When an outsourcing vendor repeatedly fails to meet deadlines, it can be a sign that they are not invested in your business goals.  This can lead to missed opportunities and lost revenue for your business.  It should also go without saying that each required task needs to be fully completed in order for the deadline to be met.  Some vendors may “meet” a deadline but skip or skimp on valuable steps in order to achieve it.  

Solution: Hold Your Vendor Accountable

Hold your outsourcing vendor accountable for meeting deadlines.  Set clear expectations and establish consequences for failing to meet them.  It’s important to ensure that your vendor understands the importance of meeting deadlines and that you’re committed to holding them accountable. 

Sign 3: Lack of Flexibility

A vendor that is inflexible and unwilling to adapt to changing business needs can be a liability.   It is extremely rare for a long-term project or relationship to have zero changes.  Inflexibility to these changes can result in missed opportunities and a lack of agility, making it difficult to respond to changes in the market or shifts in business priorities.

Solution: Encourage Flexibility

Encourage your outsourcing vendor to be flexible and adaptable to changing business needs.  Foster a culture of innovation and collaboration that allows for open communication and brainstorming.  Work together to identify potential roadblocks and find creative solutions.  Also, allow as much lead time as possible for notifications and changes to occur.

Sign 4: Lack of Initiative

If your outsourcing vendor is only doing what is asked of them and not taking initiative to help improve your business, it may be a sign that they are not invested in your long-term success or that they lack the capability to think outside the box.

Solution: Set Clear Expectations

Set clear expectations and encourage your outsourcing vendor to take initiative.  Share your long-term business goals and encourage them to come up with ideas and solutions that can help you achieve those goals.  Recognize and reward initiative to encourage a culture of continuous improvement.  Also avoid any communication or behavior which directly or indirectly suggests an unwarranted decrease in payment to vendor after the contract with the vendor commenced.  Every day may be a day for negotiation, but decreases in expected pay can foster a mindset of “doing just enough” or “doing as little as possible” to meet the modified requirements.

Sign 5: Lack of Transparency

When an outsourcing vendor is not transparent about their processes and performance, it can be difficult to assess their alignment with your business goals.  This can lead to a lack of trust and a breakdown in the partnership.

Solution: Encourage Transparency

Encourage your outsourcing vendor to be transparent about their processes and performance.  Establish regular reporting and monitoring to ensure that they are meeting expectations.  Be open about your own goals and objectives and encourage your vendor to share their insights and recommendations.  In order for transparency to be truly effective it absolutely must occur in both directions.

Sign 6: Lack of Quality

When the quality of work delivered by your outsourcing vendor is consistently below par, it can be a sign that they are not aligned with your business goals.  Poor quality work can lead to lost revenue and damage to your reputation.

Solution: Focus on Quality

Make quality a top priority and hold your outsourcing vendor accountable for delivering high-quality work.  Set clear quality standards and expectations and establish consequences for failing to meet them.  Encourage your vendor to focus on continuous improvement and provide constructive feedback to help them achieve the desired quality standards.  Also consider issuing monetary rewards directly or indirectly (by awarding the vendor new projects) for providing consistently exceptional work quality. 

If you’re experiencing any of these signs, it’s time to take action.  Start by having an honest conversation with your outsourcing vendor, and communicate your concerns clearly.  If they are not willing or able to make changes to better align with your business goals, it may be time to start exploring other options.  Remember, your outsourcing vendor should be a true partner in your business success, and it’s important to find one that is aligned with your objectives and committed to helping you achieve them.