Successful Outsourcing

Did you know that surveys have revealed that 35% of outsourcing contracts were terminated for cause and 65% resulted in customer dissatisfaction? If you want to avoid significant costly mistakes, this course is for you. The instructors have experienced outsourcing from all angles. They were there at the beginning and negotiated the original deal. They then had to live with the results and manage the outsourcer. The experience and techniques they will impart to you are invaluable.

The Decision

Business objectives of outsourcing
The human dimension
Dealing with the internal outsourcing debate
When outsourcing is right even when it’s wrong
Outsourcing vs. sub-contracting
Renewal vs, renegotiation & make vs. buy decisions
Renegotiate or insource?
Outsource or not?

The Issues

Mistakes in managing contracts
The management overhead burden (What should it really be?)
The challenge of bundled vs. granular pricing
Price flexibility
Price vs. cost base liability
Stranded cost issues
Contracting for future unknown technology
Technology refresh issues
The 5 worst practices in outsourcing
The contractual bombshells such as “Fair Price” and “Best Commercial Practices”
Managing increasing outsourcing complexity with fixed resources
Can global outsourcing work?

Lessons Learned

Best in breed vs. general contracting
Current good contracting terms & conditions
Management team structure
End-to-end measurement
The effect of SANs/NAS & other technologies
Inflationary vs. deflationary pricing
Successful pricing methodology
Unit cost vs. consumption cost
Effectiveness of benchmarking
Sales tactics used by outsourcers
New RFP provisions
Recent trends
What if outsourcing does not seem right?
Internal communications during the outsourcing negotiation
Consensus negotiation in outsourcing
SLAs, warranties, remedies
Transition services front end/back end
What if you have to bring it back in house?