We\u2019ve also included some templates that\u2019ll help you communicate more effectively and collaborate easily with your outside partners and associates. <\/p>\n\n\n\n
When you reach the end of this text, you\u2019ll have a better grasp on how to use third parties. <\/p>\n\n\n\n
Without further ado, let\u2019s dive in!<\/p>\n\n\n
![\"Communicate](\"https:\/\/pumble.com\/blog\/wp-content\/uploads\/2021\/11\/Communicate-and-collaborate-with-third-party-business-cover.png\")
<\/figure>\n<\/div>\n\n\nQuick access to free templates for third-party communication and collaboration: <\/p>\n\n\n\n
Download the Goals and Expectations Questionnaire <\/a><\/p>\n\n\n\n Download the Follow-up Feedback Sheet<\/a> <\/p>\n\n\n\n Download the Survey: Effective Communication With Third Parties<\/a><\/p>\n\n\n\n A third party in business is any individual or organization that provides services or products to an organization or its customers on behalf of the organization<\/strong>. In other words, a third party can be defined as any entity or individual that a company does business with. <\/p>\n\n\n\n Overall, a third-party relationship can be defined as a contract-based relation between a company\/enterprise and the individual\/company that provides specific services\/products to the said company\/enterprise. <\/p>\n\n\n\n While it\u2019s important to respect each partner\u2019s unique desires and fulfill their requests, a company has to have a standardized policy on third-party relationships. This can be tweaked in a way to fit each partner individually without affecting the company\u2019s general policy. <\/p>\n\n\n\n As there are different types of third parties in business, it\u2019s important to name a few. <\/p>\n\n\n\n\n A communication app for teams of all kinds. Discuss, share, and collaborate.<\/p>\n\n Third parties in business include vendors, contractors, suppliers, business associates, distributors, resellers, etc. <\/p>\n\n\n\n We can make a distinction between the following types of third parties in business:<\/p>\n\n\n\n Let\u2019s take a closer look at each group individually. <\/p>\n\n\n\n A contractor <\/strong>is<\/strong> an independent, self-employed entity or individual that supplies companies and businesses with goods, services, materials, equipment, or even personnel. <\/strong><\/p>\n\n\n\n Although contractors might work for another company, they aren\u2019t considered company employees. In most cases, contractors work according to a contractor agreement. This agreement outlines what services, products, and materials the contractor will provide to the company, the cost of the deal, as well as any warranties. <\/p>\n\n\n\n In line with that, a contractor can be:<\/p>\n\n\n\n Invite contractors to your Pumble workspace<\/a><\/p>\n\n\n\n Although some people consider \u201ccontractors\u201d and \u201cfreelancers\u201d to be the same, we shouldn\u2019t use these terms interchangeably. <\/p>\n\n\n\n A freelancer<\/strong> is a professional who provides services from their field of expertise to more than one client.<\/strong> Freelancers usually don\u2019t have permanent clients or contracts and work on a per-job or per-task basis. <\/p>\n\n\n\n Since they engage in short-term projects, they are much more flexible than contractors and company employees. Freelancers tend to work in the following sectors: <\/p>\n\n\n\n A vendor or a supplier is a person or a company that makes goods and services available to other companies and organizations.<\/strong> In that sense, vendors can play a crucial role in the business supply chain.<\/p>\n\n\n\n For example, the HR department in a large business is planning a New Year\u2019s Eve party for their employees. To be able to do that, they will have to hire an outside company (or more than one) to take care of different parts of the event. These might include:<\/p>\n\n\n\n Each of these would be treated as a separate vendor\/supplier of specific products or services.<\/p>\n\n\n\n According to Gartner\u2019s glossary of Information technology, DCO (Data Center Outsourcing)<\/a> is \u201ca multiyear, annuity contract or relationship involving the day-to-day management responsibility for operating server or host platforms, including distributed servers and storage.\u201d<\/em><\/strong> <\/p>\n\n\n\n These services may cover the following:<\/p>\n\n\n\n As experts on a certain subject matter or field, consultants are usually individuals or agencies that provide their clients, other individuals and companies, with professional advice in their respective areas of expertise.<\/strong> <\/p>\n\n\n\n In essence, a consultant\u2019s job is to provide companies and organizations with:<\/p>\n\n\n\n Last but not least, customers are an essential part of most businesses. They are individuals or companies that usually buy another company\u2019s product or service and, in that way, drive revenue.<\/strong> Without customers, businesses wouldn\u2019t exist. <\/p>\n\n\n\n A business\u2019 success is reflected in the number of customers it has \u2014 the more, the merrier. Thanks to their customers\u2019 input, most businesses are able to better understand their needs and find ways to improve their services or products.<\/p>\n\n\n\n\n Try Pumble by CAKE.com, a secure hub for building stronger customer relationships and a space for client meetings.<\/p>\n\n To make the matters even clearer, let\u2019s look at a few examples of third parties in business.<\/p>\n\n\n\n Real estate escrow companies are a perfect example of third parties in business, in this case, in a real estate transaction. Namely, they are a neutral agent that collects documents and money for both the buyer and seller. Aside from that, they hold deeds and funds needed to complete the transaction. <\/p>\n\n\n\n Naturally, the exact process differs from case to case, but, upon all requirements being met, the escrow company delivers the documents and funds to the appropriate parties. After that, the escrow is closed.<\/p>\n\n\n\n Another example of a third party is a collection agency. They are usually hired when a debtor hasn\u2019t been making payments to the creditor on time. Then, a collection agency\u2019s job is to ensure the debtor honors the agreement and pays the creditor.<\/p>\n\n\n\n This way, creditors avoid filing a lawsuit against the debtor and going to court. <\/p>\n\n\n\n Many types of businesses use delivery services, which are another example of a third party. Whether they deliver food, documents, or goods, they are essential for companies that want to streamline their workflow. <\/p>\n\n\n\n\n Simplify team communication and collaborate more effectively. Try Pumble by CAKE.com.<\/p>\n\n When businesses need help finding qualified job applicants, they may turn to employment agencies. These third party businesses then connect them with aspiring candidates suited for the job in question.<\/p>\n\n\n\n Companies for payment processing are examples of third party businesses that facilitate card payments between businesses and customers. <\/p>\n\n\n\n They make sure the very process of payment is as easy and quick as possible.<\/p>\n\n\n\n Finally, companies that maintain your equipment or manage your network security are also examples of a third party in business.<\/p>\n\n\n\n Their job is to remove all the technical obstacles that stand in the way of your productivity. <\/p>\n\n\n\n Now that we have seen some of the examples of third parties in business, it\u2019s high time we considered what the benefits of using third parties are. <\/p>\n\n\n\n Learning a new skill or hiring a new person takes time \u2014 a commodity we all seem to lack nowadays. <\/p>\n\n\n\n That\u2019s why it pays off to hire a third party to save time and streamline your business, whatever it may be.<\/p>\n\n\n\n Inextricably linked to time-saving is money-saving. <\/p>\n\n\n\n Let\u2019s say your company needs a lawyer. It\u2019s certainly much less expensive to hire them when the need occurs than to keep them on a retainer. <\/p>\n\n\n\n Hiring a third party to take some of the work off of your shoulders can be a real blessing. You won\u2019t have to worry about overseeing everyone and making sure the work is done. <\/p>\n\n\n\n In other words, using a third party allows you to focus on your job. <\/p>\n\n\n\n Invite collaborators to your Pumble workspace and increase communication efficiency <\/a><\/p>\n\n\n\n Developing a team of experts takes time. That\u2019s all well and good when you know you\u2019ll need the said in-house experts \u2014 it eventually pays off.<\/p>\n\n\n\n However, when time is of the essence, hiring a third party for a specific job will bring good results more quickly than developing a whole new team for the purpose. A third party will provide you with valuable expertise in no time. <\/p>\n\n\n\n Our contributor, Shannon Powers<\/a>, Chief Strategy Officer, SVP at kglobal, highlights that third parties generally have expertise that the primary parties lack: <\/p>\n\n\n\n \u201cThey can facilitate aspects of a project in which they have expertise so the primary parties can focus on their core competencies. This results in efficiency for all.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n Last but not least, using a reputable third party positively affects your own brand and reputation. <\/p>\n\n\n\n This, in turn, can help you grow your business and attract customers, as working with a respectable company increases your chances of being recognized as an equally esteemed business.<\/p>\n\n\n\n\n Simplify your work with Pumble \u2014 the all-in-one communication app.<\/p>\n\n Now that we\u2019ve covered some of the main benefits of using a third party in business, let\u2019s see the other side of the medal \u2014 what the risks are. <\/p>\n\n\n\n Sadly, outsourcing a task means giving up some degree of control. <\/p>\n\n\n\n Although this can allow you to focus on your core business, it can also put you at risk if the third party doesn’t deliver as promised. That is why it\u2019s important to wisely choose a reputable third party whom you can trust. <\/p>\n\n\n\n Hand in hand with losing control comes privacy concerns. <\/p>\n\n\n\n Namely, if a third party you\u2019re collaborating with requires sensitive information \u2014 financial or personal, such as your bank account or a social security number \u2014 this may render your private data vulnerable in case of a data breach. <\/p>\n\n\n\n\n Improve collaboration and cut down on emails by moving your team communication to Pumble.<\/p>\n\n Another risk involved with using a third party is developing a potential dependency. You might begin to rely too heavily on a third party, to the point where it becomes damaging to your business. For instance, you may put too much trust and responsibilities in them, which can sometimes be more than they can chew. <\/p>\n\n\n\n Later on, if something goes wrong, it can be difficult to break this connection. However, this is why you should have a backup plan ready, just in case. <\/p>\n\n\n\n Following the company\u2019s standards and principles is not so hard when all employees are familiar with them, as well as with the risks of not complying with them. <\/p>\n\n\n\n However, when a third party gets involved, these standards may be endangered, as Shannon Powers points out:<\/p>\n\n\n\n \u201cIt\u2019s important to vet third parties carefully and understand their service terms. One potential risk is inadvertently agreeing to something your primary client or member would not like, such as data sharing. There is also a risk that the third party does not abide by the same business principles or standards as you do, which can reflect poorly on you. If you introduce a third party to the business process, you are ultimately responsible for them.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n\n\n\n In other words, before doing any business with a third party, make sure you get them acquainted with the company\u2019s set of rules and regulations. <\/p>\n\n\n\n Lastly, using a third party inevitably convolutes your business operations. The trouble is, you need to coordinate everything you do with another company. <\/p>\n\n\n\n To minimize the chances of making mistakes, pay special attention to communication with a third party.<\/p>\n\n\n\n In line with that, let\u2019s consider why communication and collaboration with third parties is relevant for the success of your business. <\/p>\n\n\n\n The way your company communicates with third parties will impact your reputation and affect how others see your entire business. This is why paying extra attention to your third-party policy and the basics of communication with external partners is paramount for ensuring long-term business success. <\/p>\n\n\n\n No matter what type of third-party relationship we\u2019re talking about, the rules for fostering effective communication and collaboration remain the same:<\/p>\n\n\n\n However, the sun doesn\u2019t always shine in the third-party business world. Quite often, actually, workplace failure is considered to be the main consequence of ineffective communication and collaboration \u2014 about 86% of employees and executives<\/a> believe this is true. <\/p>\n\n\n\n If internal communication<\/a> suffers, external communication suffers by default. <\/p>\n\n\n\n In other words, if your interaction with third parties isn\u2019t functioning properly, your entire business will feel the consequences. <\/strong><\/p>\n\n\n\n This is why it\u2019s important to recognize the common challenges that might arise between a company and its outside partners. <\/p>\n\n\n\n Need a reliable communication tool? Try Pumble<\/a><\/p>\n\n\n\n Most business owners, HR managers, and higher-level employees are well aware of how hard it can be to establish clear communication with contractors, freelancers, or vendors and how much this can affect further collaboration. <\/p>\n\n\n\n Overcoming communication barriers<\/a> is an integral part of any business, especially today, when a great deal of communication is done over the Internet, telephone, and other means of communication. <\/p>\n\n\n\n To help you understand how communication and collaboration between companies and their external associates can go wrong, we\u2019ll list some of the most relevant ones and try to explain these thoroughly. <\/p>\n\n\n\n The early stage of communication with a third party represents a critical point in the whole communication and collaboration process. The mere basis here is setting up clear goals and expectations. They should be a constant reference point. <\/p>\n\n\n\n Sometimes, miscommunication can occur even at the beginning of cooperation, when one of the sides involved in a project or business agreement misinterprets goals or expectations set by another party.<\/strong> This can prove detrimental to the project\u2019s success and could lead to contract termination. <\/p>\n\n\n\n A SaaS company, Software Digital<\/em>, hires Adventureomatic<\/em>, a team-building company, to organize their team-building event \u2014 but, they don\u2019t provide clear requirements. <\/p>\n\n\n\n Based on the information they were provided with, Adventureomatic<\/em> organizes a Zipline adventure without getting approval from Software Digital.<\/em> On the day of the team-building event, Software Digital<\/em>\u2019s employees appear at the location, expecting to have a relaxing time. Instead, many immediately give up and go home. <\/p>\n\n\n\n The team-building event is a failure, because Software Digital<\/em> failed to specify what they wanted and Adventureomatic<\/em> failed to ask for approval before going through with the event. <\/p>\n\n\n\n Broken communication is a loose term that covers a wide range of things \u2014 from missed emails, over unread messages, to inappropriate jokes.\u00a0<\/p>\n\n\n\n Communicating with freelancers, suppliers, or customers can be even more specific because they can come with their own assumptions about what effective communication<\/a> and collaboration should be like. <\/p>\n\n\n\n Although it might seem that damaged communication with a third party can easily be repaired, the consequences could be far deeper than you think, some of them being: <\/p>\n\n\n\n Sometimes, even an unintentional mistake or action can lead to a communication breakdown<\/a>. <\/p>\n\n\n\n\n Strengthen your business communication and collaboration process with Pumble by CAKE.com.<\/p>\n\n A natural beauty products company, Charm Infinity,<\/em> is trying to make a breakthrough in the beauty industry. They hire Penelope, a freelance social media manager, to lead their social media campaign. <\/p>\n\n\n\n Penelope sends her proposal for approval to Charm Infinity<\/em>, yet no one responds because, unbeknownst to her, the email ended up in the Spam folder. <\/p>\n\n\n\n Believing she didn\u2019t contact them, Charm Infinity<\/em> now thinks Penelope is unreliable and not suitable for the job. <\/p>\n\n\n\n On the other hand, Penelope thinks Charm Infinity<\/em> isn\u2019t serious enough to be her client. <\/p>\n\n\n\n No side makes an effort to examine the steps that led to this situation and the whole project fails. <\/p>\n\n\n\n Another aggravating challenge that might occur in communication and collaboration with contractors, consultants, or other partners is missing deadlines. <\/p>\n\n\n\n Having a busy schedule can sometimes lead to project overlapping or simply forgetting about project deadlines.<\/p>\n\n\n\n Although there are many reasons for missing deadlines, one thing is certain \u2014 in the world of business, this brings about a series of unfavorable events that can lead to ruin and communication breakdown. <\/p>\n\n\n\n While there\u2019s no way to predict unforeseen events, planning each project to the tiniest detail might help avoid breaking deadlines. The value of meeting deadlines in business can\u2019t be emphasized enough.<\/p>\n\n\n\n Bryan, an experienced graphic designer, has been hired by a telecommunication company to create a new logo<\/a>. The company wants to reveal its new logo during the party they will be throwing exactly in a month, so they emphasize the importance of having the logo before that. <\/p>\n\n\n\n Confident in his graphic design skills, Bryan doesn\u2019t start working on the new logo for 2 weeks, so he doesn\u2019t finish the logo for the party. <\/p>\n\n\n\n The company cancels the party, terminates the contract with Bryan, and goes on to find another graphic designer to finish the project \u2014 and all that at the cost of their reputation.<\/p>\n\n\n\n Disagreeing on financial matters is not an uncommon occurrence in business, both in internal and external operations. Besides pointing to other issues, not being on the same page about money can lead to:<\/p>\n\n\n\n While some find money to be the crucial factor for success, often it will depend on effective communication and understanding between the involved parties. <\/p>\n\n\n\n George, an international hotel owner, wants to redecorate one of his most prestigious hotels in Dubai. <\/p>\n\n\n\n He hires a well-known interior decoration company, Ignatious Rubbins<\/em>, to take care of that project. <\/p>\n\n\n\n As his new hotel in London is opening in a month, he doesn’t want to spend a lot of money redecorating the hotel in Dubai. However, he doesn\u2019t communicate his budget clearly to Ignatious Rubbins<\/em>. <\/p>\n\n\n\n After seeing their project proposal, George ends up quite disappointed with their budget estimate. This leads to George ending the collaboration. <\/p>\n\n\n\n Collaborating with third parties can be a risky business, which means that security plays a paramount role here. Reliability and security have become essential to doing business globally, especially when it comes to ensuring your clients\u2019 and partners\u2019 data security. <\/p>\n\n\n\n While security issues can cover a wide range of problems, each has to be dealt with on time and with utter seriousness. <\/p>\n\n\n\n Coming up with a detailed security plan for third-party collaborations will help:<\/p>\n\n\n\n Gaming Dudes <\/em>is a gaming company with several world-known games. Thanks to Dark Skies Wallbanger<\/em>, a DCO that provides them with hosting and storage solutions, they have been considered one of the most reliable organizations in the gaming industry. <\/p>\n\n\n\n However, after Dark Skies Wallbanger<\/em> becomes a victim of a cyberattack \u2014 leading to the loss of all data on their systems, including that of Gaming Dudes \u2014 Gaming Dudes\u2019<\/em> rating decreases, and they lose millions of users.<\/p>\n\n\n\n\n Secure and reliable team communication app for professionals. Try Pumble.<\/p>\n\n Now, don\u2019t be discouraged by the challenges of third-party collaboration and communication that we\u2019ve listed here. Such obstacles are a common occurrence in business. <\/p>\n\n\n\n Yet, the way companies deal with third-party communication barriers and solve other collaboration issues with their external associates will determine their success in the long run. <\/p>\n\n\n\n Without further ado, here\u2019s a list of 10 useful tips to help you foster better communication and collaboration with outside associates and partners. We\u2019ve even included some templates that will help you improve your communication with third parties. <\/p>\n\n\n\n Picking the right people to communicate and collaborate with external parties should be a top priority. Considering that each client comes with a unique set of requirements and opinions, they should be connected with like-minded people to ensure a successful collaboration.<\/p>\n\n\n\n This is where knowing your workforce will come in pretty handy \u2014 being aware of who\u2019s an effective communicator<\/a> and who\u2019s got the proper skills will help you make a great team for managing all your external communication. <\/p>\n\n\n\n On top of that, make sure that the employees in charge and your partners know who to contact when needed \u2014 to reduce the possibility of miscommunication<\/a>. <\/p>\n\n\n\n A short \u201cEffective communication with third parties\u201d survey would help your employees find out what they know about communicating with external associates. Namely, a survey like this will indicate their strengths and weaknesses while helping you direct your further steps. <\/p>\n\n\n\n Those who do exceedingly well in the survey can be your number-one pick when the time comes to form a team for the next third-party cooperation.<\/strong><\/p>\n\n\n Download the Survey: Effective Communication with Third Parties<\/a><\/p>\n\n\n\n Once you\u2019ve picked the right people from your company and gone over the initial steps of establishing a collaboration with a third party, maintaining regular communication is essential for the development of the project. Making sure that the employees in charge of the project and the client remain in constant contact will prove beneficial for both sides. And, thanks to the communication apps available, it\u2019s easier than ever.<\/p>\n\n\n\n For example, Pumble, a team messaging app<\/a> by CAKE.com<\/a>, helps teams communicate more quickly and exchange relevant information and files. While the app was designed to foster real-time communication<\/a> among team members<\/em>, its guest access feature<\/a> allows non-company people to easily communicate with company employees. <\/p>\n\n\n\n This can be really helpful in remote and hybrid work settings, where asynchronous communication<\/a> is the main mode of interaction. <\/p>\n\n\n Explore Pumble’s Guest Access feature<\/a><\/p>\n\n\n\n Furthermore, make sure you engage your external partners in various communication situations<\/a> to encourage better communication and collaboration. Some of the ways to promote a healthy relationship between your company and external partners are:<\/p>\n\n\n\n Another important piece of advice is to set expectations<\/a> and clear goals. <\/p>\n\n\n\n When collaborating with third parties, setting goals and expectations is twofold \u2014 both sides have to clearly say what their goals are and what they expect from this interaction. <\/p>\n\n\n\n This approach will save you valuable time, as honesty is a powerful business tool that can: <\/p>\n\n\n\n To that end, you can create a general \u201cGoals and expectations\u201d questionnaire that both you and your associate can fill in. Make sure that your questions are clear and precise so that you collect the information relevant to your project. Use this as a reference guide throughout the project. This can help keep both parties on the same page and serve as a starting point in case of changes further down the road. <\/p>\n\n\n Download the Goals and Expectations Questionnaire<\/a><\/p>\n\n\n\n Once you agree to collaborate with an external partner and set goals and expectations, it\u2019s essential that both sides clearly state their needs and requirements. Make sure to ask all the questions before you engage in a certain activity or project. Pay special attention to the requirements regarding the deadlines or budget. <\/p>\n\n\n\n Although many rely on oral communication even for important details and information, don\u2019t be afraid of writing all relevant data down. Encourage employees to use a note-taking app or write important info down in their planners. Later on, they can rely on these notes whenever necessary to make sure things go according to plan.<\/p>\n\n\n\n The amount of data that is being created, stored, and collected online is huge. This increases the risk of security threats and cyber-attacks. In turn, this can greatly affect communication, especially if you rely on modern communication technology to stay in touch with your outside associates. <\/p>\n\n\n\n One of the best ways to increase security is to invest money in proper security practices for your business. This may cover:<\/p>\n\n\n\n Moreover, you can organize an online presentation on security management practices for your employees, clients, and external associates. Use this opportunity to educate them about current security risks and trends and to provide them with material for further reading. <\/p>\n\n\n\n\n Improve collaboration and cut down on emails by moving your team communication to Pumble.<\/p>\n\n Communicating clearly is the basis of any healthy professional relationship \u2014 the same rule applies to third-party communication. The key to establishing long-term trustworthy relationships with outside parties is to be transparent in business, especially today when delivering quality products and services greatly depends on speed. <\/p>\n\n\n\n This can particularly be important for companies that offer products and services to users across the globe. A professional business is one that\u2019s transparent, secure, and easy to reach. Nothing upsets an unsatisfied client like not getting proper information about a product or service they are interested in. <\/p>\n\n\n\n Even if your company doesn\u2019t deal with users or customers, maintaining transparency will keep loyal partners close and attract new ones \u2014 a formula for success. <\/p>\n\n\n\n Here\u2019s what you can do to keep communication breakdown at bay and foster transparency in the workplace:<\/p>\n\n\n\n \ud83d\udca1 Pumble Pro Tip <\/strong><\/p>\n\n\n\n To learn more about transparent communication, read our article on this topic: <\/p>\n\n\n\n If your company has a lot of users globally, having 24\/7 customer service will help build your company\u2019s reputation. <\/p>\n\n\n\n Hiring the best people trained to answer your customers\u2019 questions timely and precisely will ensure professionalism and credibility. Modern customer service tools<\/a> also help you streamline and manage customer interactions more effectively.<\/p>\n\n\n\n 24\/7 customer service even on the free plan. Try Pumble today<\/a><\/p>\n\n\n\n Once you get past the clumsy beginnings, you should pay close attention to how the interaction with a third party progresses. While there\u2019s no need for strict control and micromanaging, being a silent supervisor and <\/strong>checking in<\/strong><\/a> from time to time just to see if everything is going in a good direction is more than enough. <\/strong><\/p>\n\n\n\n If your team encounters some disagreements in communicating with a third party at some point, fear not, as this is only normal. As long as all dilemmas and quarrels are resolved properly, there should be no major communication breakdowns. But, keeping an eye on signs of miscommunication will help dodge a bigger bullet later on. <\/p>\n\n\n\n Moreover, showing interest in what\u2019s going on with external partners will be beneficial for the success of your business. Keeping your third parties involved and letting them know you are at their disposal will build trust and ensure a successful collaboration. <\/p>\n\n\n\n \ud83d\udca1 Pumble Pro Tip <\/strong><\/p>\n\n\n\n Be careful not to fall into a trap of micromanaging your team while supervising them. If you need some help in recognizing the signs of micromanagement, we have a whole blog post on that topic for you: <\/p>\n\n\n\nWhat is a third party?<\/h2>\n\n\n\n
![\"Illustration\"](\"https:\/\/pumble.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/features@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nTypes of third parties in business<\/h2>\n\n\n\n
\n
Type #1: Contractors <\/h3>\n\n\n\n
\n
Type #2: Freelancers<\/h3>\n\n\n\n
\n
Type #3: Vendors <\/h3>\n\n\n\n
\n
Type #4: DCO or Data center outsourcing<\/h3>\n\n\n\n
\n
Type #5: Consultants <\/h3>\n\n\n\n
\n
Type #6: Customers<\/h3>\n\n\n\n
![\"Illustration\"](\"https:\/\/pumble.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/landing-1@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nThird party examples in business<\/h2>\n\n\n\n
Example #1: Real estate escrow company<\/h3>\n\n\n\n
Example #2: Collection agency<\/h3>\n\n\n\n
Example #3: Delivery service <\/h3>\n\n\n\n
![\"Illustration\"](\"https:\/\/pumble.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/landing-2@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nExample #4: Employment agencies<\/h3>\n\n\n\n
Example #5: Payment processors<\/h3>\n\n\n\n
Example #6: Equipment maintenance<\/h3>\n\n\n\n
The benefits of using a third party in business<\/h2>\n\n\n\n
Benefit #1: Using a third party saves you time<\/h3>\n\n\n\n
Benefit #2: Using a third party saves you money<\/h3>\n\n\n\n
Benefit #3: Using a third party eases your workload<\/h3>\n\n\n\n
Benefit #4: Using a third party provides you with valuable expertise<\/h3>\n\n\n\n
![\"Shannon](\"https:\/\/pumble.com\/blog\/wp-content\/uploads\/2021\/11\/Shannon-Powers.jpeg\")
<\/figure>\n<\/div>\n\n\n\nBenefit #5: Using a third party helps you build your reputation <\/h3>\n\n\n\n
![\"Illustration\"](\"https:\/\/pumble.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/landing-4@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nThe risks of using a third party in business<\/h2>\n\n\n\n
Risk #1: Using a third party leads to loss of control<\/h3>\n\n\n\n
Risk #2: Using a third party can generate privacy concerns<\/h3>\n\n\n\n
![\"Illustration\"](\"https:\/\/pumble.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/templates@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nRisk #3: Using a third party can create dependency<\/h3>\n\n\n\n
Risk #4: Using a third party may harm your business standards<\/h3>\n\n\n\n
<\/figure>\n<\/div>\n\n\n\nRisk #5: Using a third party makes your company\u2019s operations more complex<\/h3>\n\n\n\n
Why is communication and collaboration with third parties important?<\/h2>\n\n\n\n
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5 Common challenges of communicating and collaborating with third parties <\/h2>\n\n\n\n
Challenge #1: Misinterpreted goals <\/h3>\n\n\n\n
Example of misinterpreted goals<\/h4>\n\n\n\n
Challenge #2: Broken communication <\/h3>\n\n\n\n
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\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nExample of broken communication<\/h4>\n\n\n\n
Challenge #3: Missed deadlines <\/h3>\n\n\n\n
Example of a missed deadline<\/h4>\n\n\n\n
Challenge #4: Budget disagreements <\/h3>\n\n\n\n
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Example of a budget disagreement<\/h4>\n\n\n\n
Challenge #5: Security issues <\/h3>\n\n\n\n
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Example of a security issue<\/h4>\n\n\n\n
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\n10 Tips on fostering better communication and collaboration with third parties<\/h2>\n\n\n\n
Tip #1: Use a survey to choose the right people for communication with third parties<\/h3>\n\n\n\n
![\"Effective](\"https:\/\/pumble.com\/blog\/wp-content\/uploads\/2021\/11\/Effective-communication-with-third-parties-2.png\")
<\/figure>\n<\/div>\n\n\nTip #2: Foster clear communication <\/h3>\n\n\n\n
![\"Managing](\"https:\/\/pumble.com\/blog\/wp-content\/uploads\/2021\/11\/Managing-guest-access-in-Pumble.png\")
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Tip #3: Create a questionnaire to set explicit goals and expectations <\/h3>\n\n\n\n
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![\"Goals](\"https:\/\/pumble.com\/blog\/wp-content\/uploads\/2021\/11\/Goals-and-expectations-questionnaire.png\")
<\/figure>\n<\/div>\n\n\nTip #4: Determine needs and requirements <\/h3>\n\n\n\n
Tip #5: Invest in maximum security <\/h3>\n\n\n\n
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![\"Illustration\"](\"https:\/\/pumble.com\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/landing-3@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n \n\n\n\nTip #6: Reinforce transparency <\/h3>\n\n\n\n
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Tip #7: Provide your customers with 24\/7 customer service<\/h3>\n\n\n\n
Tip #8: Monitor the process <\/h3>\n\n\n\n