Outsourcing and Shared Services

Many companies have already outsourced their Customer Services, IT and Finance back-office functions or established shared services centres for major business processes. As globalisation and connectivity enable new ways of doing business, Companies are now outsourcing other activities like research, product development, tax and legal services. The rationale for outsourcing is thus changing dramatically; a growing number of organisations see it as a means of obtaining strategic advantages, increased flexibility and not just as a cost-cutting measure.

The scale and complexity of outsourcing is also increasing. The earliest outsourcing contracts were long-term, one-to-one arrangements. Today, with greater connectivity, the trend is towards multi-sourcing — where a lead supplier functions as a contractor and orchestrates other suppliers or where a group of suppliers collaborates to provide a collection of services.

How Operations Management Consultancy & Solutions can help

The outsourcing lifecycle consists of seven phases, each with its own set of challenges. We focus on the big picture, and look at the full term of the deal as well as the issues arising in each phase. We can help you:

1. Identify which activities to outsource.

• Detailed analysis and workflow modelling.
• Objective review of processes.

2. Define your requirements and assess potential suppliers.

3. Work with you to negotiate the right terms to suit your business and customers.

4. Work with your legal team to draft watertight contracts covering the sharing of intellectual property, performance criteria and penalties for non-performance.

• Support or provide the creation and documenting of key elements of your outsource agreement including:

  • Statements of Work.
  • Service Levels to include turnaround times and deadline requirements.
  • Key Performance Indicators.
  • Punitive Damages.
  • Escalation template / format / matrix for resolution of disputes and queries.
  • Gain share agreements.
  • Improvements and agreed benefits.
  • Business continuity agreements.

5. Support the major changes with your internal and external business partners and your employees about alterations in their working environment:

• Communication plans.
• Encourage collaboration.
• Employee consultation processes.
• Assist in the definition and restructure of your retained organisation.

6. Review and manage existing contracts.

7. Resolve disputes.