Decision-Making Process
Each outsourcing involves several steps. Experience shows that
"failed" outsourcing transactions arise from a failure to maintain the
discipline of following such steps. They consist of:
- Inventory of in-house resources.
- Assessment of in-house resources compared to services available in the
marketplace.
- Identification and evaluation of prospective bidders.
- Competitive bidding procedure, including requests for proposals, evaluation
of bids according to selected criteria and clarification and comparison of bids.
- Negotiations, including a letter of intent and usually a term sheet.
- Contract signature.
- Transition.
- "Steady state" period of services provided by the specialized
service provider.
- Renegotiation or termination.
Additional Resources
Business and Legal Factors
Alternatives to Outsourcing (requires member registration)
Life Cycles / Phases in Outsourcing
Deal Structures (requires member registration)
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