One of the toughest jobs in outsourcing is tracking the impact various changes may have on your outsourcing business case. Knowing what these changes are and how to best manage them will make a meaningful difference on your business case. The latest report by Alsbridge spells out thirteen questions that outsourcing buyers need to ask in their outsourcing business case in order to be better prepared for the potential changes and hence have a more successful business case.
“What happened to the savings promised in your outsourcing business case?” is a question that is often raised by the higher management, twelve to eighteen months post signing the outsourcing contract. In order to ensure you have the right answer to this question, you should anticipate any potential changes in your outsourcing business case by proactively asking questions related to the following areas:
- Addressable Costs
- Inflation rate
- Foreign Exchange Rate
- Growth Rate
- Corporate Overhead
- Retained Staff
- Provider Under Bid
- Pent up Business Demand
- Inspecting Invoices
- Contract Obligation and Delivery Management
- Rebadging and On/Offshore Mix
The outsourcing business case should include the financial impact from any clauses that were agreed to in negotiations that would alter your updated outsourcing business case as well as methodically taking into account any changes in assumptions that would have material impact on your bottom line.
There are a number of actions and forces – some you can control and others you can’t – that can significantly alter the savings, quality improvements, and capability uplift you planned to achieve in your outsourcing contract. Knowing what these changes are and how to best manage them will make a meaningful difference on your business case going forward.
Rarely do we ever find an environment totally static. Therefore to be better prepared for tackling the potential changes affecting your outsourcing contract, ask the above 13 questions in your business case. For complete details on these questions, download the full report 13 Insightful Questions to Ask in Your Outsourcing Business Case.