A well structured contract is a pre-requisite but not sufficient to harvest all the benefits of outsourcing. Key to success here are right implementation and effective oversight. Sub optimal contract governance can be expensive and sometime catastrophic. In a large outsourcing program, central monitoring and control, measuring performance parameters, careful coordination and risk management are basic qualification for ensuring success. Typical challenges client face in managing their outsourcing contract is…
- Operational priorities take most of the time from IT leadership, leading to no or little time left for proactive contract management. Results are missed opportunity, lack of preparation and expensive procurement.
- There is no clear ownership on the client side to have a continuous track on contract enforcement. This leads to inertia in the system with no incentive for vendor to perform at the committed level.
- Lack of clarity on parameters which need to be measured. Management has no information on service quality, burn rate and other operational parameters leading to difficulty in decision making.
- Lack of counter check on invoices, service credits and penalties leading to error prone payments, missed opportunities and inefficient enforcement.
- No, irregular or unstructured audits for enforcing contract commitments around business continuity, disaster recovery, data integrity, information security and other compliance needs.
Orcapod consulting team has years of experience in managing large size outsourcing program. Our Governance Support Services can help our Clients in following different ways.
Governance Office: We can make an Onsite or Offshore governance office. This office can provide governance support in areas like demand management, invoicing, contract management, audits, management dash board, performance reporting and improvement management. While our team will become an integral part of your IT management, your staff would be able to focus on the strategic aspects of the governance. This will not only help you reduce governance & compliance cost but will improve service quality and efficacy.
Transition Support: Starting and stabilizing the outsourcing relationship is the crucial step where maximum pain occurs. Obvious reasons are lack of understanding & experience, less prepared leadership, no time for hiring right people and peak starting workload. Our governance team can add management capacity to accompany you during the initial phases of the program and gradually move out once you stabilize the operations and build in-house capacity.
Virtual War Room: While your in-house governance team is driving the program, we can support them by building and operating a virtual war room. This will not only act as a passive repository of contract documents, historical reports but will be an active shelf space maintained by our team to provide support information. This way, while we will take care of your mundane and repetitive business task, your leadership can spend their time on real decision making.