Outsourcing Contract Management

Each outsourcing contract consists of various obligations and duties by both the sourcing supplier and buyer that must be managed. Some obligations are time or event driven and require project tracking. Other contractual text provides a guide for decisions and actions taken by either the supplier or client. Outsourcing Management Services will provide the contractual tracking and management processes to ensure the obligations are being carried out by both parties in both the spirit and letter of the contract. We will continually assess and refine such processes to ensure the contract objectives are being met.

Additionally, contract changes will likely occur during the course of the outsourcing agreement. A change control process will be required to ensure contract changes are documented, authorized, and organized in a manner for easy access by client personnel, including auditors. Outsourcing Management Services will design, build and implement this change control process.

Below are some of the outsourcing contract management activities that Outsourcing Management Services will be responsible for:

• A project plan will be developed and maintained, outlining outsourcing contract deliverables and obligations by both the supplier and buyer, including updates for status.
• We will develop, implement and manage a contract change control process to track changes, new service requests, or document contractual events in a manner that will allow efficient access by client personnel, including auditors.
• Outsourcing Management Services will ensure appropriate escalation processes are in place to notify client of activities, decisions or events that may have contractual consequence.
• Outsourcing Management Services will develop, or assist in developing all the appropriate contract management documentation, including authorization processes for contract modifications and new service requests, including assessment of any new fees.

Contract Management SLAs

Outsourcing Management Services will establish service levels for the outsourcing contract management service. These service levels will include financial performance credits if not performed per the agreement. Examples include:

• Completion of the outsourcing contract project plan project within a fixed, agreed upon timeframe from contract start.
• Ensure appropriate escalation and management of outsourcing contract terms (for example, written notice of an impending deliverable within an agreed timeframe).

Key Benefits

• Ensures contractual obligations by both the sourcing supplier and client are met.
• Helps eliminate potential breach of contract situations
  Improves adherence to outsourcing contract objectives
  Provides a well documented audit trail.

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