Practical Tips for Reasonable Service Levels when Outsourcing

Share This on Linked In recently ran an article on getting the service levels you expect with outsourcing that resulted from a Gartner interview and contained some good tips that are worth repeating.

  • Define Realistic Expectations
    If you’re an efficient organization, don’t expect 30% savings from outsourcing. It’s going to take time for them to learn your business, and even when they do, the economy of scale they offer will only go so far.
  • Realign Expectations Annually
    Demands change. Markets change. You need to make sure your expectations change accordingly.
  • Define the right measurements and metrics.
    Make sure they measure against your goals.
  • Make sure you have a consensus opinion from senior management.
    This insures you define appropriate goals and relevant measures.
  • Prepare.
    Make sure everyone understands where service is going to be increased, decreased, and what they need to do to support the transition.
  • Outsourcing is not a solution.
    If you have a problem, you have to solve it before you can outsource it … otherwise, you’re outsourcing a failure waiting to happen.
  • Build in Flexibility.
    Long(er) term agreements need to be structured to anticipate the change that’s inevitable in business and technology.
  • Relationship Management, and Respect, is Critical.
    You can’t just hand the process off and expect a miracle.