The use of service providers to perform Outsourcing functions presents various risks to organizations. If not managed effectively, the use of service providers may expose organizations to risks that can result in negative outcomes.
On the front end, organizations need to begin with smart, strategic choices about which functions to outsource, if any. Only then can your organization tackle challenges like RFP design, procurement, relationship management and knowing when to change course. Each of these tasks can be tricky on its own, but taken together, they can form a complex process. Outsourcing doesn’t mean less management – it means a different approach to management, and the wrong step can be costly.
Once the contract is in place a Transition can be a significant challenge of successful outsourcing, requiring great care and attention. The transition needs to be guided by a transition governance framework to oversee smooth transition. A robust change management methodology must be employed to ensure transition risks are minimized and communication across the organization managed effectively. Beyond transition, an effective governance structure must be established at different levels of the organization. The role of the governance function must go beyond just contractual oversight. The business must manage and understand the role of transition management, governance and the role of the legal contract and Service Level Agreements.
Addressing these questions can significantly accelerate outsourcing projects while managing risk and increasing value. Setting up the right frameworks and management practices can help deliver the potential cost savings that can make outsourcing attractive. Tri-global has a strong renegotiation capability, which helps clients repair relationships when necessary.
Tri-global has completed hundreds of Outsourcing assignments that go over the Outsourcing Lifecycle.