Why Outsourcing To Single Vendor Is Better

A critical consideration factor for clients outsourcing their assignments is to identify the right type of vendor engagement, which would ensure them a tension free project execution with the desired quality standards. Based on the business need, organizations worldwide opt for either single vendor or multi-vendor engagement. While each of these have their own sets of pros and cons, the single vendor architecture is gaining prominence in the recent years owing to additional benefits as compared to the multi-vendor model.

Outsourcing clients focus on a few parameters, while choosing their vendor, that are critical for their project success. Cost effectiveness, correct implementation of business requirements, quality output, minimal risks, and fast delivery are some of them. For an outsourcing client to achieve any of these, it is vital to establish a thorough vendor management process in place. The challenge with this arises when outsourcing clients engage multiple vendors to deliver their project. When more than one Vendor Company serves an outsourcing organization, communication bottleneck is a major risk. Aligning all its vendors in line with its organization goal becomes a challenge. This results in coordination gaps, lack of clarity in understanding the client need, and poor project management. In the end, the client achieves the desired output after a number of hurdles, or in some cases is unable to reach the desired outcome at all.

To overcome these challenges, outsourcing clients are moving more toward the single vendor model, which addresses the various challenges associated with the multi – vendor model. Here, the client and vendor are able to establish a more streamlined process, which seamlessly integrates both the parties, helping them leverage superior performance. Better project governance, effective trouble shooting, enhanced efficiency, better understanding of client requirements all compliment for a successful completion of an outsourced assignment.

Some benefits of single vendor outsourcing / offshoring

  • The vendor has a better understanding of the client’s business and project.
  • Communication between the outsourcer and the contractor takes lesser time, lessening the turnaround time, while also reducing management costs.
  • With single vendor outsourcing / offshoring, the time needed for troubleshooting issues (should any occur) is significantly reduced.
  • Without any multi-vendor implementation inconsistency, if an error occurs, it requires lesser effort to coordinate between the outsourcer and its contractor to find a resolution.
  • Setting up vendor governance and vendor management process is less complicated.
  • Since the customer interacts only with one vendor, it’s easy to set up operational guidelines and processes.
  • One of the most common situations that a customer may come across is that of finger pointing between the vendors in multi-vendor outsourcing. Such situation does not arise if the client outsources to a single vendor.
  • If the vendor involves a subcontractor, it’s the vendor’s responsibility to ensure that the subcontractor provides the quality product / service that were agreed upon, within scheduled timelines.
  • In single vendor outsourcing, there is only one agreement signed between the outsourcer and the vendor.

Certain essential aspects to evaluate when outsourcing to a single vendor is their cultural fitment with the outsourcing client company, expertise in the required area of work, their technical and functional competencies, and their ability to understand the project requirement, and deliver the required output. In such cases, it is safer to opt for an old player in IT outsourcing/offshoring, proficient in all aspects related to it, and who has the capability to provide a wide range of IT services.

Congruent, a pioneer in IT outsourcing / offshoring with over 20 successful business years in this field is one good example for such an old player. Congruent takes pride in continuing to be the most preferred custom software development company and outsourced software development company to a large number of global clients which includes many Fortune 500 companies. A list of renowned clients like 3M, Starbucks, and Hitachi etc. is a testimonial to the versatility of Congruent’s IT services and quality. Congruent specializes in software application development, Microsoft BI (SSIS, SSAS, & SSRS), SharePoint 2013, mobility, SaaS, Dynamics ERP & CRM and Windows Azure development.

With two decades in software development services, and numerous project executions, Congruent promises a great service for its clients.

If your vendor possesses the qualities and competencies similar to that of Congruent, you are more likely to experience a positive outsourcing / offshoring experience without the need of relying on multiple vendors for your many IT requirements.

Tags: Offshoring, Outsourcing, Outsourcing Software Development
previous post: Offshore developers as to project outsourcing – the shifting trend next post: Why customers should have an option of interviewing candidates over video or Skype before they engage with the vendor in offshoring?