Managing outsourcing project checklist

Determining objectives

• Determine clear objectives for outsourcing project
• Recognize potential expenditure
• Define commitment on the part of your organization to manage the outsourcing relationship
• Be focused on people whose work is to be outsourced, and their significance to your organization
• Define what services are to be outsourced and how they are currently being provided

Choosing a n outsourcing partner

Ensure that an outsourcing partner is committed to provide:

• A proven service record in the operations and services being outsourced
• A loyal and reliable concern to preventing loss of control
• A broad experience and good reference list
• Guarantees that there is no any conflict of interest or contradiction with other customers
• Some guarantees on specific cost savings in agreement
• Evidence of quality management
• Competent training of personnel and professional assistance
• Experience in handling the important issue of personnel employment
  

Drawing up the outsourcing agreement

• Carefully learn the legal points and terms of the agreement, especially if this is an offshore outsourcing project
• Specify and discuss some services in the outsourcing agreement which you for some reasons would not outsource under any circumstances
• Discuss options for the agreement term, closure and prolongation
• Determine a review date and checkpoints
• Define a pilot period before the agreement comes into effect
• Define allocation and assignment of responsibilities and roles so that both parties are clear on their obligations and authorities
• Determine conditions and terms for involving of new or existing staff
• Discus which party provides and owns equipment and hardware
• Discuss which party has allowance for change management
• Consider report form for checking the outsourcing partner's performance
• Request the partner for submitting you a draft agreement after all the details are discussed

Considering the price of outsourcing project

• Discuss the cost of agreement and propose a pricing model
• Discuss milestone management, payment schedule and taxes
• Consider terms concerned to charges and compensation
• Point exception costs based on performance metrics

Benefits from outsourcing

• Focus on core operations and services
• Improved quality the services
• Gain expertise and value experience from external companies
• Better cost management and reduced expenditures
• Introduction of the la test technologies and effective solutions
• Improved standards and better performance

Potential problems with outsourcing

• Unintelligible expectations about what performance benefits should receive from outsourcing
• No confidence from staff who may consider outsourcing as a form of downsizing unless the benefits have been properly explained and communicated
• Probability to lose control over the outsourcing process
• Lack of prior experience of outsourcing relationships
• Inadequate and irrelevant planning