Outsource Magazine Issue 25 - (Page 42)

Trends in OuTsOurcing gOvernance and relaTiOnship ManageMenT As the outsourcing space continues to evolve and mature, so too do the various frameworks within which activity takes place – in particular those related to governance and the parameters of an outsourcing partnership. Here, we look at some key trends defining the structures of the next generation of contracts. Michael Hart Michael Hart is Managing Partner, Merit Outsourcing Advisors, and the former MD of EquaTerra Canada. He is also an online columnist for Outsource. O 42 ● ● ● rganisations around the globe have increasingly realised the importance of a robust governance model as a critical component deciding the success or failure of outsourcing engagements. Despite the great promises, governance issues such as lack of clear alignment of personnel, lack of structure and discipline in processes, lack of common and clear definition of services, insufficient metrics to evaluate service provider performance and the health of a relationship occur frequently and have strained relationships. There is also a lack of conventional wisdom when it comes to managing procurement, defining the scope of services, relationship and expectations in a multivendor outsourcing arrangement. Good governance and relationship management, widely adopted by buyers, are making way into the formal contract during negotiations of outsourcing arrangements. According to the Centre for Outsourcing Research & Education (CORE), there is a noticeable maturity amongst buyers of outsourcing services who increased focus on the health of the outsourcing relationships. Organisations are investing more time, resources and capital towards developing efficient sourcing strategies and governance models in order to realise maximum business value from an outsourcing engagement. “We believe that from ethics, enlightened self-interest, and the commonweal, our governance will emerge.” – John Perry Barlow www.outsourcemagazine.co.uk http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Magazine Issue 25

News & Commentary
Making Contact
Taking the Chair
Clinical Outsourcing Strategies
New Worlds
To Share Or Not To Share?
Trends in Outsourcing Governance
The Next Big Idea
Smart Intelligence
Taking the ChairCracking the Wip
NOA Round-Up
Predicting Success
It’s Not The Contract.
Get Productive
Rigorously Agile
Good Relations
Knowledge Sustainability
Racking Up The Wins
Trust Me... I’m an Outsourcer
Top Ten
The Legal view
HfS Round-Up
Online Round-Up
Inside Source
The Last Word

Outsource Magazine Issue 25