It’s not easy to break ties with anyone in your life, be it a significant other, an employee or a business partner.  However, there are times when firing someone becomes absolutely necessary, and there is certainly a wrong and right strategy.

The oft-used process of making the announcement before closing time on payday is not the best way to fire your outsourcing partner.  Instead, there are a number of steps you can take to make a clean and cordial separation from your outsourcing partner:

1. Soften the blow. The first and most important step in firing your outsourcing partner is to notify them that they are on rocky ground.  It is a good idea to provide a type of formal warning to your outsourcing partner that there is trouble in the air.  This might be done through a telephone call to a leader in the company or a formal letter.  Explain that there are some problems in the business relationship, and it’s time to review the effectiveness of the partnership.  Set an appointment to meet with key leaders in the partner organization.
2. Review the contract, point-by-point. The next step is to carefully review the original contract that was set in place when the partnership began.  Identify any areas where the outsourcing partner clearly failed to deliver.  It also wouldn’t hurt to bring some concrete examples to the table so that the partner can see exactly what you are discussing.  Be sure to address the major points of the contract and try to find a specific example of how the partner failed to meet expectations for each major point.
3. Allow time for a question and answer session. After the contract review, the next step is to provide an opportunity for your outsourcing partner to respond to some of the points that have been discussed.  They may feel the need to respond immediately, but a more effective approach may be to set up a second meeting.  You could also ask for them to write down some questions and answers for review at a later date.  Tension may be thick following the contract review, and it is perfectly fine to allow for some space between your outsourcing partner and the problem at hand.
4. Conduct an exit interview. Before severing ties completely, conduct an exit interview with your outsourcing partner to see if you could have taken more action steps to avoid this situation.  You might consider distributing a survey and/or conducting interviews with key leaders one-on-one.
5. Set up alternative solutions with other companies. You’ll always want to have alternative outsourcing options available before you actually fire the outsourcing company you’re with.

These five steps will make firing your outsourcing partner a smoother and more valuable experience.  You can learn from past mistakes and make better decision moving forward.