Managing the Outsourcing Relationship

If you are just entering a relationship or renewing it, governance rules of the road should be followed

Outsourcing is only as successful as you plan, manage and direct the relationship.  The rules of the road that should be followed are:

• Make sure your enterprise management initiatives include all the data and information related to outsourced processes and that they are tracked throughout the lifecycle of the relationship.

• Duplicate functions typically exist in organizations likely which create redundancies and increasing costs - root out these teams and right-size your organization before you start the relationship.

• The managers who ran the function that has been outsourced usually do not make the most individuals to manage the ongoing relationship.

• Your outsourcing management team size should ebb and flow as needs change throughout the transition and ongoing, or steady-state, phase - make sure your team flexes and contracts accordingly.

• Ensure you and your outsource providers have aligned goals or risk failure to deliver on the "intent" of the deal - metrics and service level agreements are a must

• Even after the relationship has been in place for a while with your outsource provider, it is never too late to establish best practice.

• Focus on the "what" and not the "how" of the relationship - the reason that the outsourcing relationship was implemented was to do things differently.  

• Track and measure internal client satisfaction - keeping an open dialogue and obtaining regular feedback from internal clients is the key to managing expectations.

• Manage your organization's level of trust toward its outsource provider - do whatever necessary to maintain or regain trust to avoid diminishing value.

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