Managing the outsourcing relationship is a journey. It's a journey where miracles do not happen overnight. For a successful outsourcing relationship, it requires hard work, dedication and a little bit of the Irish luck.
4. The Role of Governance Advocate for Customer and Service Provider Support expectations of joint management team (next slide) Contract governance - oversee contract compliance Process Governance & Quality Assurance - on a reduced basis Drive PI, Metrics & Training Systems and Process Investments Work with value stream partners on long term strategy to drive fundamental change in service delivery Implement and enforce strong but practical controls Clarity of roles & responsibilities Governance retained service support (check signing, banking release, cash management, etc.) versus day-to-day operations Customer trouble shooting – minimal as required Support New Business (Growth) and transition activities Approach: manage outcomes not activities Managing relationship is a journey – do not expect miracles from day one
13. Outsourcing Lessons Learned Total buy in of all stakeholders Do not outsource processes that are: Broken; or Have high variability But if you have to …. mitigate risk through process harmonization Team alignment from day one Total project management Phased approach Over hire because you WILL need them Do not layoff too quickly; particularly the SME’s (subject matter experts) Invest in “behind the scenes customer service” More of our troops on the ground and for a long period Continuously train outsourcer’s staff Make sure infrastructure is ready & tested before transition
14. Outsourcing Lessons Learned (Cont’d) Be open in providing outsourcer with information to make informed decision Establish a strong Governance function from get go: - Audit (Process & Contract) - Customer Service - Management Reporting - Training - Site Visits - PI/CI - Contract Governance - Customer Councils Strong but practical SLAs (service level agreements) Clarity of roles & responsibilities (Governance vs. Processor) Be willing to give up to the outsourcer Recognize that relationships are as important (if not more so) as financial savings Assign a communications resource Communicate…….. but communicate in a positive manner Finally, manage outcomes & not activities
15. Contact For additional information and assistance, contact: Anupam Tantri Tantri & Associates, LLC Process & Control - Shared Services & Outsourcing 9 Westborough Drive Simsbury, CT 06089, USA Contacts: Office: 860-658-7535 Mobile: 860-798-1995 (USA) Mobile: 91-(0)98200-58667 (India) Email: anupam.tantri@comcast.net Blogsite: http://myoutsourcingpundit.blogspot.com/