Outsourcing

• Review and evaluate which activities may be appropriate for outsourcing and what value you might deliver from outsourcing that process or function.
• Consider the pluses and minuses of going to a single source provider or to a small number of specialist providers.
• Before outsourcing, make sure the benefits to be gained are defined and will ideally deliver tangible results at a Strategic, Operational and Financial level.
• Consider a formal tender process, informal proposal submissions, supplier presentations and possibly outsourcing on a trial basis on selected areas of work for a short period of time.
• Explore options with regard to pricing, contract terms and conditions as there should be opportunities for mutual gain.
• Make sure that there is a comprehensive plan in place to make the transition process as smooth as possible.
• Think about what metrics or Key Performance Indicators are relevant and worth measuring, who will take responsibility and how you are going to measure them.
• Make sure that time spent on an ongoing basis maintaining the relationship and communication links between the two parties.
• Review the contractual arrangement, performance measurements and rewards mechanisms on a regular basis to take into account any strategic, operational or marketplace changes.
• Ensure that internal communication mechanisms are in place to keep employees aware of progress and of the likely impact on them.
• Involve the supplier at every level in all relevant discussions / meetings in the build up to outsourcing to ensure a successful handover in the first few critical months.