Multi-Vendor coexistence

This is my birthday post!

In today's world IT services companies will have to coexist in a multi vendor customer scenario. Most customers who outsource their IT services these days tend to spread their risks by using more than one outsourced vendor. If you are an outsourced service provider you need to coexist in this competing world all the time. Every business that opens up you have to fight with in the customer organization and grab it from your competitor. With this your margins are squeezed in turn you assign lower quality resources resulting in poor customer service. Customer wins on the monetary side but looses on the quality side with this arrangement.

To smoothen this process and help each other to do more business outsourced vendors should have a business arrangement at corporate levels. There should be formal agreements that they should work out among themselves which will be mutually beneficial in such cases. This should finally trickle down to the account manager or engagement manager who manages these accounts at the customer site. With this all the vendors in race can agree on reasonable price to the customer who invariably has the budget to spend.