TPI, Governance, Value
Re-Learning the Lessons from Outsourcing’s V1.0: The Value Comes through Governance
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Re-Learning the Lessons from Outsourcing’s V1.0: The Value Comes through Governance
Source: TPI Platform
Much has been written about the art of “governance” when it comes to managing outsourcing relationships. In fact, the executives who have endured the experience of balancing internal and external pressures in such a role have been quite articulate in sharing their lessons. Simply said, the record shows that a commitment to a strong, organized, and sponsored competency for service management and governance is the essential determinant over success or failure in outsourcing.
How do client organizations “prove” value from outsourcing, especially to senior managers who are not directly responsible for managing the agreement? How do they justify governance expenditures to others who think it is “unnecessary overhead”? How do they improve over time and know what are “industry best practices”?
More to the point, how do we move away from the notion of “contract management” and adopt the more holistic perspective of “service management” that embraces all of the participants in a services “value chain?”
Where does your governance organization fall on the spectrum of industry best practices for managing outsourcing?
To address these questions, TPI suggests that outsourcing buyers design specific measurements that clearly demonstrate the achievement of outsourcing objectives. Buyers have long used fundamental measurements related to service levels and price benchmarking, but leading organizations are raising the bar and putting in place measurements and peer comparisons related to the entire outsourcing value chain.
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