Application service provider USinternetworking (usi.net) addresses this issue in the premier edition of its customer publication, USiUpdate. The company's efforts to achieve customer satisfaction involve an especially scholastic approach to understanding the customer relationship.

The ASP cites a recent study by IT research firm Gartner Research (gartner.com) entitled Dealing with Dissatisfaction in Application Outsourcing. The report discusses some of the common factors contributing to overall AO dissatisfaction as well as ways to remedy these problems.

The research covers such topics as creating clear and consistent communication channels, defining and managing expectations with your provider, establishing contingencies to evolve the contract as your business changes, and building a relationship with trust and confidence as the cornerstones.

Curtis Hampshire, USi general manager, says that establishing a trustworthy relationship is all part of USi's approach in achieving AO satisfaction, and the company sets out to do so by educating its clients.

"All too often, outsourcers are selling what they are selling as opposed to what the client is interested in buying," says Curtis Hampshire, GM at USi. "We try to educated people on the right models to go into an outsourcing arrangement: how to demand the right thing from your outsourcer, how to configure SLAs that are constant with your business, and then structure the agreement in conjunction with what [the business] is trying to accomplish."

USi says it implemented the educational business strategy with scented candles manufacturer and seller Yankee Candle (yankeecandle.com). Already a client for six years, Yankee Candle recently signed its third contract with USi.

Yankee Candle cites USi's active involvement throughout each application implementation process as one of the main factors contributing to its success. The service provider, it says, clearly delineates its initial and ongoing responsibilities and tasks, providing a detailed contract documenting timelines, outcomes, governing processes, service level agreements and procedures for escalation, ongoing feedback and measurements.

And, according to Yankee Candle, the periodic review of USi's value proposition, including comparisons to internal sourcing costs and industry benchmarks, helped enormously in the company achieving success.

"We've created some unique client surveys and we don't ask the stereotypical 'are you satisfied' kinds of questions," says Hampshire. "We ask very specific questions like, 'are you realizing the return on investment you originally had when you made the outsourcing decision'. Twice a year, we interview the business owners, the financial people, and we interview often times the clients themselves."

Yankee Candle says its partnership with USi has shown many tangible business results during its six year relationship, including rapid implementation of a new retail e-commerce solution and new Web site for wholesalers, an innovated Flash-powered interface which allows users to custom configure candles and packaging, a 75 percent growth in site traffic for its retail site, improved service to wholesalers and increased business agility.

With results like these, many of USi's clients - which include industry-leaders such as Arthritis Foundation, Coventry Health Care, Visa USA and XL Capital - consider the ASP more than just a AO vendor.

"When we're successful, we are viewed more as a partner than a vendor," says Hampshire. "We're seen as an extension of the client's IT delivery capabilities. We become very integrated with what they're trying to accomplish."