Outsourcing is a very complex, long-term business relationship. Outsourcing providers are engaged for both their expertise and their ability to deliver consistent, high quality, financially-advantageous results. For this reason, building the right business relationship with the right service provider is likely to be the single most important factor in an organization’s outsourcing success.
As cited by the International Association of Outsourcing Professionals (IAOP) the process of first defining the customer needs, then engaging the marketplace of providers, and ultimately selecting the right provider requires a well-orchestrated interplay of internal assessment and concensus building, coupled with an effective and practical interaction with the marketplace of potential providers.
Hereunder is the standard checklist of developing and communicating outsourcing business requirements;
Ability to develop a clear statement of the organizational goals and required outcomes.
Ability to establish multi-year goals and objectives as a frameworkfor contract and establish operating guideline for the duration.
Ability to develop an accurate and complete baseline of current costs, environment, processes, and performance levels (current state) as well as a gap analysis between these and the required performance levels.
Ability to develop critical success factors that define business measures of success associated with the area under consideration for outsourcing aligned with the organization’s overall business objectives and key performance indicators (e.g. process improvement, financial, service levels, changed business model, customer satisfaction etc.)
Ability to translate the organization’s goals into one or more documents that effectively communicate current and future requirements and the selection criteria that organization plans on using to the marketplace.
Ability to utilize alternative collaborative approaches to defining and developing outsourcing solutions, such as, the business case approach, an independent qualification process for providers that can then be brought in by project teams to design and prototype solutions.
Ability to ensure that a well defined and agreed to process and checklist for development and dissemination of the outsourcing business requirements to potential service providers is followed.