From the start of the relationship outsourcing providers have to accept that the client dictates the business environment and the overall objective. The level of maturity they have reached in IT and IT support provides a framework for the services that a provider can offer, and in this market the project is likely to span at least 24-36 months. Crucial in the early stages is that the provider manages expectations balanced with delivering solutions to meet their business requirements.
In the mid-market, relationships are everything. Of course the client is looking for a minimum set of service capabilities, but there are lots of providers who can do that, so the differentiator is whether the provider will make a suitable partner. Mid-market companies are not yet enormous animals, they are still growing, so they look to build strong relationships with people and at the same time ensure they have a mature service provider. Mid-sized organisations do not want be treated like a small fish in a big pond; instead they want a partnership with both parties bonding at every level, and a firm focus on peer-to-peer relationships. A good outsourcing provider needs to remain flexible, develop an expertise in the client’s market and support the client through change.
Expertise is increasingly important and there is a growing demand for greater insight and sector knowledge particularly across service management and applications. Outsource providers must understand the culture of the organisation and the market in which it operates, for example being aware of changing regulatory or legislative factors that affects the client. The better they understand how their particular outsourced service fits into the ‘big picture’ for the client organisation and the more they focus on making sure that their particular contribution is consistently a strong one the more valuable they become to the client.
Whilst meeting mid-market expectations is challenging – particularly since most outsourcing providers will already have developed a go-to-market offering and a service catalogue – it is well worth doing. There is a growing demand in the sector for quality outsourcing services, and an exciting culture of innovation, in part born out of the necessity to control costs and look at new avenues for growth. But the main driver that steers mid-market companies towards outsourcing is the increase in merger and acquisition activity, which is resulting in new teams, new locations, new offices and new service requirements. The delivery and support models in the mid-market are often going through change, so with a degree of structured agility and flexibility, outsourcing has a vital role to play.
