1. Industry & Trade

ACT Don't REACT (continued)

The Risks and Reward of Outsourcing

From , former About.com Guide

Market Selection

    • Determining the list of alternatives
    • Researching market experience
    • Certification
    • Skill levels
    • Geographic issues
    • Single vs. multiple vendors
    • ASPs

Making the decision

    • Examining all the financial factors
    • Examining all the resource factors
    • Examining the strategic factors
    • Examining the innovation factors
    • Defining, assessing & learning from objective measurements
    • Setting Priorities

Managing the decision The Organizational Impact of Outsourcing)

    • Communications - internal, external
    • Informing the internal organization
    • IT Organizational changes
    • Change Management Techniques
    • Conflict resolution
    • Reward System Changes

At the Negotiation Table

    • Presenting clear responses
    • Differentiators
    • Obtaining commitment
    • The need for employing legal resources

Contracts

    • Offshoring and legal Issues
    • MSA's, SOW's, Professional Services
    • Scope of Services
    • Inspection and Operational Audit Rights
    • Facilities
    • Subcontractor Agreements
    • Key personnel
    • Regulatory
    • Stop Work Orders
    • Client Property and Data
    • Fees and Payments
    • Deliverables and Service Warranties
    • Personal Data
    • Intellectual property Rights
    • Disaster Recovery and Business Continuity
    • Indemnification
    • Terms and Termination
    • Insurance
    • Limitation of Liability
    • Governance
    • Data protection
    • SLA's
    • Rewards/Penalties

Outsourcing Stages and processes

    • RFP response
    • Contract Negotiations
    • Transition
    • Stabilization
    • Day to Day Operation
    • Dispute Resolution

Cultural Differences

    • Societal and Institutional Differences
    • Value Differences
    • Entrepreneurial Creativity
    • Power Distance
    • Individualism
    • Uncertainty Avoidance
    • Aggressiveness
    • Long term orientation
    • Harnessing the power of diversity

Operational Assessments

    • People
    • Financial
    • Delivery
    • Measurement & Metrics
    • Process
    • Organizational
    • Sourcing Management
    • Agreement
    • Scalability
    • Transition
    • Infrastructure
    • Business Continuity
    • Security
    • Risk Management
    • Client Satisfaction

Day-to-Day Management Relationship Management in Outsourcing)

    • Management responsibility
    • Integration of client products with in-house products
    • Account management
    • Measuring value and performance
    • Managing at a distance
    • Managing teams
    • Communication
    • Schedules/milestones
    • Evaluating vendor products on an on-going basis
    • Annual reassessment

Off-Shore Considerations andSunsetting an Outsourced Relationship and Future Trends

    • Migrating the work
    • IT Organizational changes
    • Graceful exit strategies
    • Off-shore ownership of resources
    • Exporting US employees
    • Countries getting in the game
    • Bringing the work back in house

Next Steps

    • Strategy and Vision
    • Marketing Plan
    • Training Plan
    • Communications Plan
    • Sales Plan
    • Hiring Plan
    • Marketing Plan
    • Process Training

Most of the elements above are considered hygiene, or minimum table stakes for competing in the lucrative outsourcing marketplace. Firms that are missing all or parts of the above content will not or are not effective competitors in the US outsourcing marketplace.

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