Harnessing Outsourcing for Business Advantage

Acknowledgements

Preface

Introduction

1 Outsourcing - an overview






Introduction
A definition of outsourcing
The historical perspective
Benefits of outsourcing
Potential risks in outsourcing
Functions which can be outsourced
Current outsourcing trends
Summary

2 Understand the outsourcing process



Introduction
The phases
Summary

3 Put an effective outsourcing team in place



Introduction
Team objective
Important principles
Team composition
Team skills
Risk management
Summary
Ten questions for the team

4 Evaluate the case for outsourcing



Introduction
Outsourcing - a subjective decision
Have clear outsourcing objectives
Beware of cost reductions as an objective
Understanding the risk-objective relationship
Be precise about the scope
Understand the trade-offs
Develop an outsourcing competency
Summary
Ten questions for the team
5 Select the best supplier
Introduction
Define the 'right' supplier
Compile a list of potential suppliers
Specify outsourcing requirements to interested suppliers
Choose the best supplier
Summary

6 Build a robust outsourcing contract



Introduction
Preparation
The contract
Transfers
Service provision
General legal provisions
Exit arrangements
The negotiation process
Communications plan
Summary
Ten questions for the team

7 Pricing, bonuses and penalties



Introduction
Pricing objectives
Charging structures
The charging mechanism
Bonus and penalty regimes
Summary
Ten recommendations when building bonus and penalty regimes

8 Create strong service level agreements



Introduction
Failure to produce SLAs
Timing
Drafting the SLA
Describe services not procedures
Clarify service boundaries
Define all of the services
Define service performance measures
Frequently encountered SLA issues
Summary

9 Manage the outsourcing contract effectively



Introduction
The role of contract management
Contract management skills and expertise
Summary
Five things to do after signing a deal

10 Be prepared for contract termination



Introduction
Transition risks
Factors affecting transition risks
A transition process
Transition recommendations
Summary

11 Conclusion

Glossary