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Considerations in Reviewing Outsourcing Service Contracts

April 7, 2011 - Outsourcing

Just as with any relationship, the relationship with your outsourced service providers is not a set it and forget it proposition. Though a lot of nuanced tweaking goes into fostering a successful partnership, the contract is a big factor in achieving optimal results. Facility managers should periodically review how well the current outsource contracts support the overall sourcing strategy. Some contracts may not be as relevant as they once were and may have to be modified to fine-tune the services delivered. Other contracts may need to be expanded to meet additional requirements or changes in internal staffing.

Key considerations include:
• Does the current contract allow greater flexibility in delivering services to facility management customers?
• Does the current contract allow facility management to focus on priorities, rather than using a "scatter" approach to service provision?
• Does the current contract provide the facility department with the ability to expand or reduce staff as necessary and provide expertise that does not exist among internal staff?
• Does the current contract support new management skills and provide greater control over service delivery?
• Has the current contract delivered operational efficiencies and resulted in financial benefits to facility management and the company?
• Is the current contractor accountable for service performance? Is the contractor making every effort to be cost-conscious in service delivery?
• Is the current contractor providing industry benchmark information on a regular basis to compare the facility management organization with industry service standards?
• Has the current contract allowed the facility department additional time to devote to strategic planning and does the contractor provide valuable input into the strategic planning process?


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