
Tips for Outsourcing Buyers in Setting Expectations around Future Service
“What was horrible about our outsourcing relationship in the beginning is that our expectations were…
“What was horrible about our outsourcing relationship in the beginning is that our expectations were…
The possible perils that can impact the success of an outsourcing relationship’s transition phase are…
At Outsourcing Center, a frequent comment we hear from buyers of outsourcing services is: “If…
Industry media, especially over the past two years, often points out that a significantly high…
After buyers and service providers begin working together, they find aspects about each other and the relationship they hadn’t anticipated and planned for or issues about which they had mistaken assumptions. Outsourcing Center surveyed 64 buyers on what caused those issues and how to successfully address them.
Flexibility started early. This was a ground-breaking contract in 1999. With no paradigm, it didn’t take long for the two to realize they made a mistake in scope. Flexibility allowed a 180-degree term. Eleven years later the relationship is going strong, thanks to its flexibility.
There are always unanticipated challenges in even the most well-thought-out transition. This relationship faced two major ones. First, a software vendor tried to extract $300,000 from Dell Services by forcing it to pay a licensing fee. Then, the global recession changed everything. The successful solutions were a harbinger of good things to come.
The Oklahoma Department of Human Services used paper claims to process payment to 4,300 childcare providers who watched 43,000 kids. Some had to wait six weeks to get paid! In addition, childcare claims accounted for 20 percent of the workload but took 80 percent of its time. Fraudulent claims totaled $10 million a year. A ground-breaking IT system the department created with ACS fixed everything.
Read how the parties communicate proactively, honestly, and transparently, enabling them to work collaboratively to resolve issues, take advantage of opportunities, and ensure their interests remain aligned. After 10 years together, the gray line between the two has vanished. Here’s how they communicate.
Cost and price. It’s crucial that buyers understand both when it comes to outsourcing. What…