Outsourced Service Procurement Strategies

outsourcing, goals, service contract   May 26, 2010

It is essential to go into the procurement process for an outsourced service contract with the recognition that cost, service levels and scope are part of a triangle. If you change one, you usually affect the others.

The first thing to keep in mind in the procurement process is that the overall goal of the outsourcing effort needs to be clear and understood by both parties. For instance, if your procurement process is designed to save money and that’s it, then be honest and expect your provider to manage appropriately.

Being clear about your own corporate goal makes it easier to find the service provider that is the best fit. With that goal in mind, you can ask the right questions in your RFP and evaluate proposals based on what matters to you. During the selection process, include meetings with each service provider if your organization or governance allows it and build an interview stage into the process. The depth of these interviews depends on the scope and size of your initiative. Selecting the right company in the first place creates the foundation for your partnership and outsourcing success.


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