Gartner analysts presented their findings at a symposium taking place this week in San Diego. They said that service providers must maintain better communication with their clients, and they must be more accommodating to their client's issues.
"Understanding and choosing what type of relationship best fits an enterprise's business strategy, and the value it wants from the deal, lays the groundwork for all subsequent decisions on how the deal is managed," said Linda Cohen, managing vice president for Gartner.
"The service receiver and the service provider should commit to regularly scheduled, formal meetings to review the progress and achievement of objectives to ensure mutual benefit," Cohen said. "Failing to do this, the relationship can be seriously compromised because corrections are not made in a timely fashion."
Through 2003, fewer than 30% of enterprises will have formal plans for managing long-term relationships with their external service providers (ESPs), according to Gartner. Over time, changes in the business and evolutions in technology will create a need for contract renewals and adjustments.
"Recognizing these inflection points will be critical to the long-term success of an enterprise sourcing strategy," Cohen said. "Long-term arrangements with ESPs must be built for change, rather than 'built to last.' Flexibility is the key to successful long-term service supplier and buyer relationships."