In the current economic climate companies are looking at both outsourcing and shared services to reduce cost and increase flexibility. These companies do share concerns, especially at the operational level, that there will be a loss in control over process and quality of deliverables. This article captures the dilemma very effectively. Unlike ten years ago most companies now recognise that established sourcing models such as eSCMcan now be followed to smoothen the route to an outsource or shared services. These models provide clear guidance on how these projects should be run and how risks can be managed. Building a strong partnership relationship is the key to success in outsourcing. These relationships must be based on a clear understanding of who is doing what and when – this is best captured in a Service Level Agreement or SLA. Where an SLA is clear and unambiguous it becomes a valuable document which can be referenced time and time again to clarify roles and responsibilities in outsourcing engagements.
Managing Sourcing Relationships
Drive World Class Governance
