The parties involved in an outsourcing contract should commit to regularly scheduled formal meetings to review progress, said Linda Cohen, managing vice president for Gartner. Half of information technology outsourcing projects will be considered...
Outsourcing deals within the Western economy probably work, where there is a cultural fit and where there are a wider set of mutually objectives are agreed by the senior management from both parties. The second driver is governance and buy-in.
These partnerships also seem to work best in situations such as outsourcing agreements where both parties have already established service levels which can be directly translated into a shared risk agreement.
And you've got to get the basics right too - agree on handover processes or fault escalation policies. What worries most managers and bosses about outsourcing is the lack of control they fear will ensue.
He said in a research note: "The problems included poor decision-making by Sainsbury executives, weak outsourcing governance, political in-fighting at the retailer and a risky 'big-bang' approach that made too many assumptions and took too many...
A proper process for escalation is essential. Especially in the case of long-term contracts, the parties need to pay careful heed to dispute resolution clauses in order to keep the relationship on an even keel and make the project a success.