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Managing outsourcing project checklist


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Managing outsourcing project checklist

Management of an outsourcing project can be more difficult and complicated process rather than any other sort of project. Project manager should define objectives, select the right outsourcing partner, and make an agreement. The project takes more time and requires high competence and broad experience. This checklist will help prepare, start and control the project, and to handle relationships with outsourcing partner.

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Determining objectives

  • Determine clear objectives for outsourcing project
  • Recognize potential expenditure
  • Define commitment on the part of your organization to manage the outsourcing relationship
  • Be focused on people whose work is to be outsourced, and their significance to your organization
  • Define what services are to be outsourced and how they are currently being provided

Choosing a n outsourcing partner

Ensure that an outsourcing partner is committed to provide:

  • A proven service record in the operations and services being outsourced
  • A loyal and reliable concern to preventing loss of control
  • A broad experience and good reference list
  • Guarantees that there is no any conflict of interest or contradiction with other customers
  • Some guarantees on specific cost savings in agreement
  • Evidence of quality management
  • Competent training of personnel and professional assistance
  • Experience in handling the important issue of personnel employment

Drawing up the outsourcing agreement

  • Carefully learn the legal points and terms of the agreement, especially if this is an offshore outsourcing project
  • Specify and discuss some services in the outsourcing agreement which you for some reasons would not outsource under any circumstances
  • Discuss options for the agreement term, closure and prolongation
  • Determine a review date and checkpoints
  • Define a pilot period before the agreement comes into effect
  • Define allocation and assignment of responsibilities and roles so that both parties are clear on their obligations and authorities
  • Determine conditions and terms for involving of new or existing staff
  • Discus which party provides and owns equipment and hardware
  • Discuss which party has allowance for change management
  • Consider report form for checking the outsourcing partner's performance
  • Request the partner for submitting you a draft agreement after all the details are discussed

Considering the price of outsourcing project

  • Discuss the cost of agreement and propose a pricing model
  • Discuss milestone management, payment schedule and taxes
  • Consider terms concerned to charges and compensation
  • Point exception costs based on performance metrics

Benefits from outsourcing

  • Focus on core operations and services
  • Improved quality the services
  • Gain expertise and value experience from external companies
  • Better cost management and reduced expenditures
  • Introduction of the la test technologies and effective solutions
  • Improved standards and better performance

Potential problems with outsourcing

  • Unintelligible expectations about what performance benefits should receive from outsourcing
  • No confidence from staff who may consider outsourcing as a form ...

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