How to manage multiple outsourced vendors

Despite a recovering economy, businesses are continuing to outsource non-core tasks like document hosting or scanning. It is a great way to keep costs low while still working with a team of qualified staffers. The issue is that when companies hire multiple vendors for other departments, including IT, workflows can become strained.

These third-party organizations do not have a contract with one another, therefore there is no incentive for them to cooperate with each other. It is up to the chief information officer (CIO) or executive in charge with these contracts to get them to play nice, because a lack of infrastructure will end up being less productive and more expensive, according to CIO Magazine.

"At a basic level, providers are financially motivated to get the highest possible fee for the least amount of work," Lois Coatney, director with outsourcing consultancy Information Services Group, told the source. "This leads them to focus on their particular scope of responsibility, and to be very diligent about specifically defining what they are and aren't responsible for."

Vendors have to remember that even though they are working with other outside help, they share a common client. Therefore, it is important to work with the client to complete these tasks. Organizations that put themselves before the client will end up losing their business and the potential of getting additional recommendations.

In order to build a solid foundation with the vendors, the CIO should create an agreement that outlines the arrangement between the multiple parties that will work with one another. The CIO might consider fining service providers that do not live up to the agreement, for example. Having regular telephone conferences with the vendors can also open paths of communication, reminding them that they are a part of the business' success.

Enterprise document management with multiple teams may be difficult at first, but once the headaches are over, the benefits will begin.


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