What is third party management? Learn how to do it, its importance and benefits!
Posted: Mon Jan 20, 2025 9:26 am
Third-party management is essential for companies dealing with third-party service providers. It is a set of good practices and standards that help in the control and monitoring of contracted companies.
Nowadays, outsourcing is a necessity for most companies, especially after the new law that expands the possibilities of this type of contract.
However, like any business relationship, it is not enough to simply pay more and hope for the best.
Effective delivery control is required, as well as monitoring supplier compliance with company policies and labor obligations.
We have prepared a comprehensive guide on the topic, explaining what third-party management is, the importance of assessing and controlling risks, best practices and much more! Read on!
What is third party management?
Third-party management is the set of practices aimed at better managing outsourced suppliers throughout their value chain, so that they correctly carry out the activities for which they were contracted.
Outsourcing services has been a topic of discussion for many years, but it certainly brings countless benefits to organizations.
After all, outsourcing core or intermediate activities of a cayman islands whatsapp data business gives the contractor the opportunity to concentrate their efforts and focus on the business strategy.
However, it is not because a company decides to outsource an activity or a set of activities that the problems are solved.
Quality delivery depends on both the commitment of the service provider and the correct monitoring and control of the contracting party.
The level of delivery, obligations, responsibilities, compliance with internal rules and legislation are a shared obligation.
Third-party management helps companies to cut through all the rough edges of signed relationships and contracts, ensuring that contracted companies do the best job possible, in compliance with the relevant laws.
In addition, third-party management can relate to how service providers manage their contracts, budgets and staffing.
What is the importance of third-party management in your company?
Third-party management is extremely important to ensure that service providers deliver quality deliverables, meeting set objectives, but also without risk.
After all, outsourcing is about establishing a strategic partnership, where companies work for your company and often within your facilities.
This also includes the service providers themselves, who must ensure full compliance with the rules, regulations and procedures.
Such a level of trust can open some operational and strategic gaps that, without due attention, can cause serious problems.
We talk about operational, reputational, financial, data security and compliance risks.
With the new legislation, the Subcontracting Law, passed in 2017, companies were able to outsource basic activities (previously only support activities, such as cleaning or security, were allowed).
This has brought a new landscape to the service provider market, which has expanded like never before.
In 2022, according to data from Valor Econômico, the sector reached a 15-year high.
In other words, the market has become more competitive, with new companies standing out over traditional ones.
Good third-party management helps organizations deal with this scenario, not only by improving management practices of contracted partners, but also by improving the selection process.
Nowadays, outsourcing is a necessity for most companies, especially after the new law that expands the possibilities of this type of contract.
However, like any business relationship, it is not enough to simply pay more and hope for the best.
Effective delivery control is required, as well as monitoring supplier compliance with company policies and labor obligations.
We have prepared a comprehensive guide on the topic, explaining what third-party management is, the importance of assessing and controlling risks, best practices and much more! Read on!
What is third party management?
Third-party management is the set of practices aimed at better managing outsourced suppliers throughout their value chain, so that they correctly carry out the activities for which they were contracted.
Outsourcing services has been a topic of discussion for many years, but it certainly brings countless benefits to organizations.
After all, outsourcing core or intermediate activities of a cayman islands whatsapp data business gives the contractor the opportunity to concentrate their efforts and focus on the business strategy.
However, it is not because a company decides to outsource an activity or a set of activities that the problems are solved.
Quality delivery depends on both the commitment of the service provider and the correct monitoring and control of the contracting party.
The level of delivery, obligations, responsibilities, compliance with internal rules and legislation are a shared obligation.
Third-party management helps companies to cut through all the rough edges of signed relationships and contracts, ensuring that contracted companies do the best job possible, in compliance with the relevant laws.
In addition, third-party management can relate to how service providers manage their contracts, budgets and staffing.
What is the importance of third-party management in your company?
Third-party management is extremely important to ensure that service providers deliver quality deliverables, meeting set objectives, but also without risk.
After all, outsourcing is about establishing a strategic partnership, where companies work for your company and often within your facilities.
This also includes the service providers themselves, who must ensure full compliance with the rules, regulations and procedures.
Such a level of trust can open some operational and strategic gaps that, without due attention, can cause serious problems.
We talk about operational, reputational, financial, data security and compliance risks.
With the new legislation, the Subcontracting Law, passed in 2017, companies were able to outsource basic activities (previously only support activities, such as cleaning or security, were allowed).
This has brought a new landscape to the service provider market, which has expanded like never before.
In 2022, according to data from Valor Econômico, the sector reached a 15-year high.
In other words, the market has become more competitive, with new companies standing out over traditional ones.
Good third-party management helps organizations deal with this scenario, not only by improving management practices of contracted partners, but also by improving the selection process.