Mar

2

To be prepared is only half the victory.

This is why planning is indispensable for any human venture which aims to succeed. Through planning expect the best however also prepare for the worst. There is no guarantee for success and a few surprises could come and wreck the best-laid plans.

More so in business if your company is engaged in an outsourcing contract. What if an outsourcing relationship does not meet your expectations and unable to provide the benefits you thought it could?

At the outset, in the drafting of the outsourcing contract, it is advised to have an “escape clause” that is both acceptable to your company and your outsourcing provider added to the stipulations.

As you prepare this escape clause, consider the following:

Your Backup. If the current partnership with your outsourcing provider, what is your contingency plan? Transfer those outsourced processes and functions back in-house or select another capable service provider? Would you require what your service provider has in terms of personnel, equipment, systems or information?

It is advised that it could be to your advantage that your company’s outsourcing contract specifies what information it is entitled to, particularly when the contract is to end.

You can also prepare two types of service level agreements (SLA) with your outsourcer. The first is a  production agreement which would be your standard performance-related contract, once the services are ready. The second type is  a “transition SLA” that establishes how quickly an outsourcer will be able to deliver the services.

Such “close” management, working along what is stated in the service contract, could spot substantive issues that need to be addressed.

Always be Professional. Prepare to treat your outsourcing provider with professional courtesy and respect. This is not only beneficial during the outsourcing partnership between your company and the provider but when your contract ends and you decide to not continue, the process of transition will be smooth and on good terms with a future possibility of working together on other projects.

Review your exit clause regularly. As you manage your business relationship with your outsourcing partner, bear some inner knowledge that your company can make use of the exit clause when you decide to. It is well within your rights as the client.

It is best not to forget or lose sight of such important details, particularly when things are turning bad to worse. Get out before it becomes the worst.

Outsourcing Solutions, Inc. – your outsourcing partner!

References:

  1. Briggs, Linda L. “Crafting an Exit Strategy.” Sourcing Magazine. Accessed 2 March 2009. Link here
  2. Hall, Mark. “Exit Strategy.” 26 February 2001. ComputerWorld. Accessed 2 March 2009. Link here

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