Research & Insight

Contract

Valuing Terms in Outsourcing Contracts

Brad L. Peterson, Partner, Mayer Brown LLP

If you are an outsourcing customer, outsourcing contracts are like a three-legged stool. Their value depends on what you agree to buy, what you agree to pay and the terms. Although the agreement and the other contract terms are often extensive, outsourcing customers often underestimate, or even overlook, the value in contract terms. Why Focus …

Award-Winning Outsourcing Relationships — Three Key Ingredients in their "Secret Sauce"

Linda Tuck Chapman, President, ONTALA Performance Solutions Ltd.

Behind each award-winning global outsourcing relationship is a fascinating story of extraordinary people, excellence in service delivery, lots of sweat equity, some painful bumps in the road, a mutual willingness to constructively solve problems, and trust earned. Contracts were awarded as a result of a competitive bid, so they started with a blank recipe card. …

Biggest Challenges in Maintaining Superior Service Levels in Outsourcing Relationships

Outsourcing Center, Kathleen Goolsby, Senior Writer

Outsourcing rookies, of course, face many challenges in achieving their desired return on investment because their deals often lack one or more elements that are foundational to success. And all outsourcing relationships encounter challenges that arise in unanticipated situations. But what about experienced buyers and relationships that are more mature? What issues arise in their …

BPO Study’s Surprising Findings on Value and Long-Term Intent in Outsourcing Relationships

Outsourcing Center, Kathleen Goolsby, Senior Writer

Buyers of outsourced services want their service providers to invest in technologies that bring continual improvement to the outsourced processes. Providers want to invest only where it is also beneficial to their margins in the long run. Therein lies a conflict. Are there reliable predictors of a buyer’s intent for a long-term, mutually beneficial relationship …

Small U.S.-Based Finance and Accounting Outsourcer Delivers Value of Large Providers

Outsourcing Center, Kathleen Goolsby, Senior Writer

The bulk of most companies’ operational costs are in manpower, says Ragu Bhargava, CEO of Global Upside, Inc., a finance and accounting (F&A) service provider. That’s one of the reasons companies in all industries are increasingly bucking the long-held practice of retaining full-time F&A staff in house. Mountain View, Calif,-based Global Upside, Inc. provides services …

Five "Gotchas" When Negotiating an Outsourcing Agreement

David Mitchell, Senior Consultant

While reducing cost is typically the primary benefit of outsourcing, you also want outsourcing agreements that allow you to realize your immediate and long-term delivery needs, provide contract flexibility and ensure that you receive maximum value for the money you will be spending. To meet those objectives, pay careful attention to the five “gotchas” noted …

Ten Pitfalls in Outsourcing Transitions

Outsourcing Center, Kathleen Goolsby, Senior Writer

There’s no shortage of methodologies and advisories on best practices and risk mitigation strategies for the transition phase of outsourcing relationships. Even so, many buyers encounter situations they didn’t foresee when structuring their arrangement, which cause costs to rise and delay time to value. Outsourcing Center studied these types of situations by surveying companies nominated …

Assessing Cultural Fit during the RFP Process – "No-Divorce" Outsourcing

Linda Tuck Chapman, President, ONTALA Performance Solutions Ltd.

A good cultural fit is one of the most important hallmarks between a successful and unsuccessful outsourcing relationship. Cultural fit assessment during the RFP process is far less structured than defined processes that help you quantitatively evaluate the service provider’s solution, capabilities and pricing. To decide whether your company and the service provider will have …

Level of Trust Impacts Effectiveness of Outsourcing Communication

Outsourcing Center, Kathleen Goolsby, Senior Writer

Ask 10 buyers of outsourcing services for their keys to success in communicating with their service providers, and you’ll hear 10 different answers because, of course, the effectiveness of outsourcing communication depends on the individuals involved. Some will also say it depends on whether they’re communicating about day-to-day operations, conflicts or opportunities. Others will comment …

Seven Examples of Resolving Financial Conflicts between Buyers and Providers of Outsourced Services

Outsourcing Center, Kathleen Goolsby, Senior Writer

At the point where outsourcing service providers or their customers have financial conflicts that will result in a monetary loss to either party, they’re walking a fine line. If they manage to resolve the issue with a mutually beneficial solution, their relationship will be even stronger than before the conflict. If not, the party that …

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