Managing the outsourcing relationship

Managing the outsourcing relationship
…….. It’s a Journey

Contents
This is a two part presentation and covers, based on a real life case study:
The Role of Governance
&
Outsourcing Lessons Learned

Advocate for Customer and Service Provider
Support expectations of joint management team (next slide)
Contract governance - oversee contract compliance
Process Governance & Quality Assurance - on a reduced basis
Drive PI, Metrics & Training
Systems and Process Investments
Work with value stream partners on long term strategy to drive fundamental change in service delivery
Implement and enforce strong but practical controls
Clarity of roles & responsibilities
Governance retained service support (check signing, banking release, cash management, etc.) versus day-to-day operations
Customer trouble shooting – minimal as required
Support New Business (Growth) and transition activities
Approach: manage outcomes not activities
Managing relationship is a journey – do not expect miracles from day one

Expectations of the Joint Management Team
Service comes first in a Service business
Wow your customer
Deliver on commitments
Under promise & over deliver
Take charge
…… but ask for help
No upward delegation
Complete staff work
Collaborative versus combative relationship
Always take the high road
No finger pointing
Emphasis on teamwork
Support employee engagement and teambuilding activities
Be organized
Help drive improvement in systems and processes
Drive PI methodology across the value stream
Adaptability and flexibility to change
Take ownership of your career and personal development
Highest level of integrity and ethics

Total buy in of all stakeholders
Do not outsource processes that are:
Broken; or
Have high variability
But if you have to …. mitigate risk through process harmonization
Team alignment from day one
Total project management
Phased approach
Over hire because you WILL need them
Do not layoff too quickly; particularly the SME’s (subject matter experts)
Invest in “behind the scenes customer service”
More of our troops on the ground and for a long period
Continuously train outsourcer’s staff
Make sure infrastructure is ready & tested before transition

Outsourcing Lessons Learned (Cont’d)
Be open in providing outsourcer with information to make informed decision
Establish a strong Governance function from get go:
- Audit (Process & Contract) - Customer Service
- Management Reporting - Training
- Site Visits - PI/CI
- Contract Governance - Customer Councils
Strong but practical SLAs (service level agreements)
Clarity of roles & responsibilities (Governance vs. Processor)
Be willing to give up to the outsourcer
Recognize that relationships are as important (if not more so) as financial savings
Assign a communications resource
Communicate…….. but communicate in a positive manner
Finally, manage outcomes & not activities

Contact
For additional information and assistance, contact:
Anupam Tantri
Tantri & Associates, LLC
Process & Control - Shared Services & Outsourcing
9 Westborough Drive
Simsbury, CT 06089, USA
Contacts:
Office: 860-658-7535
Mobile: 860-798-1995 (USA)
Mobile: 91-(0)98200-58667 (India)
Email: anupam.tantri@comcast.net
Blogsite: http://myoutsourcingpundit.blogspot.com/

Managing the outsourcing relationship

by Tantri & Associates, LLC on Dec 28, 2010

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Managing the outsourcing relationship — Presentation Transcript