Value Assurance – A Route to Optimising Your Outsourcing Relationship
Lee Ayling, Managing Director, UK Information Technology Advisory
In an outsourcing relationship it’s not uncommon for there to be pain points or situations where expectations and delivery are not aligned. Today, EquaTerra is advising organisations to invest their energy in tackling these issues to maximise the value of a contract rather than considering ending a contract which is not delivering to its full potential.
But what’s the best approach to getting the most out of your outsourcing relationship? A benchmarking exercise and review of key performance indicators can show that the contract represents good value for money and is meeting targets, when in reality there may be significant room for improvement.
A value assurance exercise offers far more as it provides a route to effectively aligning service expectations, perceptions and realities in a long term agreement to maximise value – and typically involves a review of both service provider and client in equal measure. It takes a more holistic view and includes an assessment of ‘The 6P’ areas of the relationship including people and governance, perception, process and performance.
Not only are questions asked such as, “To what extent are contractual obligations being met by both parties?”, but also, “are processes able to evolve to meet contractual needs?” and “to what extent is the spirit of the deal being delivered?”
To learn more about value assurance read the full article.
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Even before diving into these operational aspects… get satisfaction that the company’s core viability exists (and for the tender points determining if the risk can be appropriately managed by both buyer & supplier). Comprehensive and consistent evaluation is key but is also largely inadequate in most sourcing investigations.
In outsourcing, there is indeed always a room for improvement. This is just the same with technology. There is always another innovation almost everyday. In order to be successful, both clients and vendors of BPO services should always have an open communication as well as they should be open for change and improvement