In current business scenario organizations are facing increased pressure to reduce costs, improve productivity and efficiency. Many of them have chosen outsourcing as an option by leveraging third party vendors to drive change. This has resulted in an increased dependence on providers to meet organization’s business objectives.

Managing vendor relationships and driving vendor performance has become key for successful outsourcing engagements. Organizations are at different maturity level when it comes to outsourcing governance. The more mature ones are moving towards a separate Vendor Management Office (VMO) for monitoring and managing increased complexity in vendor relationships. There is also greater engagement of strategic vendors in long term planning.

One of the key challenges for any VMO is to demonstrate the ongoing value delivered by outsourcing engagement. Leading organization are turning to tools for analysis and reporting of vendor performance for greater transparency. One of the powerful frameworks used to monitor and manage effectiveness of outsourced relationships is Balanced Scorecard.

Benefits of Managed Services / Relationship Management Balanced Scorecard

• Relationship Management Scorecard puts an Organization’s objectives at the center of its performance measurement
• Translates the objectives into tangible measures and metrics to manage vendor performance
• Integrates and directs the performance and efforts from the lowest levels in the vendor metrics
• Enhance accountability by measuring and reporting on both Client’s and Vendor’s perspective
• Focus on achieving relationship nirvana with your chosen vendor