Saturday, January 12, 2013

Managing Outsourcing Arrangements

The following covers the various outsourcing stages.

Requirement Analysis

Services required need to be planned internally and documented. Should be formalised in ITT or RFP documents which need to be very detailed.

Proposal Evaluation and Supplier Selection

XSP Evaluation process would include

- cost
- functionality (viability & their dependence on 3 Ps)
- supplier track record (references, credentials, service history)
- security

Contract Preparation

Contracts should include
  1. Security measures
  2. Change management process
  3. Audit provisions.
  4. Transitional details
  5. Termination provisions
  6. Escalation procedures
  7. Reporting structure, protocols, formats
  8. Regulatory responsibilities
  9. Access control agreements
  10. IPR, copyright issues
  11. Description of services and
  12. Service level agreement
Implementation of new service

May include a number of steps and transfer of staff, equipment, data etc


Service level management should be a defined process with clear reporting protocols. It can use KPIs.