Client Engagement Model
One of the most important decisions to make when developing an outsourcing plan is selecting an engagement model. Several factors go into this consideration, including “aspects of international business strategy, selecting the geographical location, understanding the landscape and deciding on the outsourcing strategy.” The main aspect of this decision is whether you will implement incremental outsourcing or total outsourcing. Incremental outsourcing allows you to mitigate your risk by dividing work into smaller, more manageable projects. Total outsourcing involves outsourcing multiple projects and programs to a service provider.
Incremental Outsourcing
Organizations can mitigate their risks of outsourcing by dividing the work into small, more manageable projects that they outsource to service providers. Managers at the client organization therefore have well defined deliverables, programs that work under an umbrella contract with associated schedules. The location of the work is determined on a project by project basis.
Service Level Agreements (SLAs)
SLAs should describe in detail the level of service an outsourcing vendor will provide. Types of SLAs to be considered include:
- On -time Delivery – agreed dates from the outset on all major deliverables.
- Client Satisfaction – periodic surveys to be conducted by clients to make sure that the service provided is satisfactory.
- Effectiveness – effectiveness metrics that focuses on lowering costs, improving profit, and quality.
- Volume of Work – initial effective planning reduces repetition or errors.
