Managing the outsourcing relationship


Published on

Managing the outsourcing relationship is a journey. It's a journey where miracles do not happen overnight. For a successful outsourcing relationship, it requires hard work, dedication and a little bit of the Irish luck.

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Managing the outsourcing relationship

  1. 1. Managing the outsourcing relationship<br />…….. It’s a Journey<br />
  2. 2. Contents<br />This is a two part presentation and covers, based on a real life case study:<br />The Role of Governance<br />&<br />Outsourcing Lessons Learned<br />
  3. 3. The Role of Governance<br />
  4. 4. The Role of Governance<br />Advocate for Customer and Service Provider<br />Support expectations of joint management team (next slide)<br />Contract governance - oversee contract compliance<br />Process Governance & Quality Assurance - on a reduced basis<br />Drive PI, Metrics & Training<br />Systems and Process Investments<br />Work with value stream partners on long term strategy to drive fundamental change in service delivery<br />Implement and enforce strong but practical controls<br />Clarity of roles & responsibilities<br />Governance retained service support (check signing, banking release, cash management, etc.) versus day-to-day operations<br />Customer trouble shooting – minimal as required<br />Support New Business (Growth) and transition activities<br />Approach: manage outcomes not activities<br />Managing relationship is a journey – do not expect miracles from day one<br />
  5. 5. Expectations of the Joint Management Team<br />Service comes first in a Service business<br />Wow your customer<br />Deliver on commitments<br />Under promise & over deliver<br />Take charge<br />…… but ask for help<br />No upward delegation<br />Complete staff work<br />Collaborative versus combative relationship<br />Always take the high road<br />No finger pointing<br /><ul><li>Emphasis on teamwork
  6. 6. Support employee engagement and teambuilding activities
  7. 7. Be organized
  8. 8. Help drive improvement in systems and processes
  9. 9. Drive PI methodology across the value stream
  10. 10. Adaptability and flexibility to change
  11. 11. Take ownership of your career and personal development
  12. 12. Highest level of integrity and ethics</li></li></ul><li>Outsourcing Lessons Learned<br />
  13. 13. Outsourcing Lessons Learned<br />Total buy in of all stakeholders<br />Do not outsource processes that are:<br />Broken; or<br />Have high variability<br />But if you have to …. mitigate risk through process harmonization<br />Team alignment from day one<br />Total project management<br />Phased approach<br />Over hire because you WILL need them<br />Do not layoff too quickly; particularly the SME’s (subject matter experts)<br />Invest in “behind the scenes customer service”<br />More of our troops on the ground and for a long period<br />Continuously train outsourcer’s staff<br />Make sure infrastructure is ready & tested before transition<br />
  14. 14. Outsourcing Lessons Learned (Cont’d)<br />Be open in providing outsourcer with information to make informed decision<br />Establish a strong Governance function from get go:<br /> - Audit (Process & Contract) - Customer Service<br /> - Management Reporting - Training<br /> - Site Visits - PI/CI<br /> - Contract Governance - Customer Councils<br />Strong but practical SLAs (service level agreements)<br />Clarity of roles & responsibilities (Governance vs. Processor)<br />Be willing to give up to the outsourcer<br />Recognize that relationships are as important (if not more so) as financial savings<br />Assign a communications resource<br />Communicate…….. but communicate in a positive manner<br />Finally, manage outcomes & not activities<br />
  15. 15. Contact<br />For additional information and assistance, contact:<br />Anupam Tantri<br />Tantri & Associates, LLC<br />Process & Control - Shared Services & Outsourcing<br />9 Westborough Drive<br />Simsbury, CT 06089, USA<br />Contacts:<br />Office: 860-658-7535<br />Mobile: 860-798-1995 (USA)<br />Mobile: 91-(0)98200-58667 (India)<br />Email:<br />Blogsite:<br />