How do you control outsourcing business processes? It starts and ends with good communication.
To control outsourcing, the business will have to ensure there is sufficient communication not just between the business and the outsourcing provider, but between the different teams within both the contracting business and the external outsourcing company. The different teams within a business are made aware of the scope and parameters of the outsourcing relationship in a contract or an implementation plan.
How Do You Control Outsourcing – A Focus On Implementation
During the implementation, it is important to put in place a governance structure that ensures sufficient oversight from the leadership of both organizations to meet periodically and sign off on the plans and deliverables and for escalation and rapid resolution of any issues.
The transition plan details the timeline and provides training and resources for internal employees and communicates what to expect from the outsourcing relationship.
A Focus on the Transition from Implementation to the “Live Phase”
Additionally, regular communication during the implementation phase will have a different focus compared to the “live” phase where the relationship evolves to maintain the implemented process(es). In all cases, regular communication to and from the outsourcing provider ensures Key Performance Indicators (KPI) are met according to the Service Level Agreement (SLA).
A Focus On the Effectiveness of the Process
Transparency in the communication between the two companies is also valuable for necessary insights into the effectiveness of the process implemented. Clearly defined systems and/or service level commitments will mitigate any concerns about the availability of systems.
And clearly defined processes and escalation levels for management and operational issues enhance communications during the transition and thereafter.
With regular and transparent cooperation between the two entities, expectations are clarified and managed while any potential risks are mitigated or prevented. Fortunately, experienced outsourcing companies will have experience in handling a variety of issues that could potentially occur.
How can IQ BackOffice Help? Learn about our Accounts Payable service and our full range of outsourcing services.
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