Governance | Outsourcing Center

Measuring Quality, Not Quantity

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

As every newlywed discovers, golden anniversaries are more likely to be in a couple’s future if they start off their marriage on the right foot. The same applies to outsourcing relationships. Paul Swinscoe, senior program manager for Raytheon Training International in London, England, says proper preparation before buyers sign an outsourcing contract stacks the odds of its success. This advice is even more compelling when assigning accountability…..

Changes in Accountability for eBusiness and Internet Initiatives

Outsourcing Center, Kathleen Goolsby, Senior Writer

To be held accountable means one is subject to certain obligations. In the world of outsourcing, both buyers and suppliers must take preventive measures to ensure an equitable and successful relationship. For the buyer, this means structuring an effective contract that details a broad range of ways in which the supplier will be held accountable. These include audit and benchmarking rights, user surveys and disaster recovery plans. There are termination rights and the right to sue afterward as well as service levels and their related credits or penalties. And, of course, the contract describes various legal remedies in the event of failure……

Of Equal Stature

Outsourcing Center, Kathleen Goolsby, Senior Writer

BPAmoco is one of the world’s leading providers of energy and petrochemicals. As the third largest integrated oil company in the world, it enjoys considerable reach and scale. BPAmoco recognized that its core skills revolve around the products that it markets to its customers. Its accounting and transaction functions are not part of that core. We can certainly get comfortable with a third-party providing that service, allowing us to focus our attention on those things that we are good at and need to be good at, suggests David Hulf, CFO of BPAmoco Oil Europe. But only an outsourcer of equal stature would be able to supply BPAmoco’s needs.

Ingredients for a Successful Alliance

Outsourcing Center, Kathleen Goolsby, Senior Writer

Outsourcing relationships work well when each company is able to focus on its core competency. The outcome is even more successful when each firm is a leader in its field. This relationship displays the powerful results when a buyer leverages the best-in-class expertise of a supplier. It is an enlightening case study in how companies should outsource their telecommunication.

Impact on Growth

Outsourcing Center, Kathleen Goolsby, Senior Writer

Unisys and First Travel Corporation: This is fascinating example of how an international IT company moved into BPO outsourcing. Outsourcing its back office gave First Travelcorp two strategic advantages: marketing muscle and cost flexibility. First, Travelcorp could provide new, sought after services for its corporate clients, which provided a competitive edge. The result: Travelcorp landed new clients, the biggest it has ever had. And it was able to turn a fixed cost into a variable one, boosting the bottom line.

Overcoming the Inherent Gridlock in Outsourcing

Outsourcing Center, Kathleen Goolsby, Senior Writer

If you look at most traditional outsourcing contracts, says Ben Trowbridge of Ernst & Young, there are a number of built-in conflicts of interest in how they are priced and how they are structured. Trowbridge, who is responsible for the Services Market within Ernst & Young’s Operate Practice, says that equal sharing is not always possible in a typical outsourcing relationship.

Flexibility in Service Contracts: How to Build It and Keep It

Bill Bierce

Flexibility in legal outsourcing contracts bears striking similarities to a team of professional athletes under the tutelage of a watchful coach.

Communication: Cornerstone For Building Flexibility

Outsourcing Center, Kathleen Goolsby, Senior Writer

More and more, companies enter into outsourcing agreements as a strategy to remain competitive. But rapid technological advancements change the competition; hence, an essential element of an outsourcing agreement must be flexibility. G2R, which specializes in providing research and management consulting, assists end users and vendors in constructing effective sourcing agreements.

Common Problems In Outsourcing

Bill Deckelman

For those who have negotiated multiple outsourcing deals over the years, there is no question that there are indeed common problems and challenges faced in almost all outsourcing deals.

Negotiating Effective BPO Contracts

Bill Deckelman

Negotiating Effective BPO Contracts: As the trend toward business process outsourcing (BPO) grows, companies are faced with a new learning curve. They need to understand the elements of establishing a successful BPO relationship, beginning with the proper contract vehicle, which can play a critical role in fostering the chances for success.

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