Outsourcing Governance Management

Outsourcing governance defines the organizational relationships, decision-making processes, and communication mechanisms required to ensure success of the outsourcing agreement. Outsourcing governance ensures effective communication between those responsible for delivering the services and those to whom the services are being delivered.

Outsourcing Governance Management defines the orginizational model for the outsourcing agreement. This definition can vary widely based on the unique characteristics of the outsourcing deal, but minimally, will include the following:

• Organization structure, outlining the organizational relationships that exist between the sourcing supplier and the client.
• Authorization matrix defining specifically the types of decisions required, financial limits, and the person (or function) who is authorized to make that decision
• Project Plan outlining governance tasks, such as regular service delivery meetings, invoice review meetings, etc.
• Communication plan outlining communication tasks that need to be completed
• Escalation processes to give early warning of service delivery or project delivery problems.

Activities implementing the governance process will include:

• Scheduling meetings with stakeholders, including monthly service delivery meetings, invoice review meetings, project status meetings
• Deliver appropriate communications to stakeholders (client and supplier)
• Ensure problems and issues are escalated promptly to the appropriate parties
• Ensure service recipients are properly represented in the governance process
• Mediate disputes between supplier and client
• Ensure effective two-way communications are occurring between all appropriate client and supplier stakeholders (through one-on-one meetings, user surveys, etc.)
• Ensure effective feedback mechanisms are in place
  Ensure contract scope issues are properly communicated and managed

Effective governance of the relationships requires an effective and experienced senior level executive that can develop and maintain relationships with all appropriate stakeholders.

Outsourcing Governance SLA

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

• Completion of the outsourcing governance definition, authorization matrix, and project plan within fixed, agreed upon timeframe from contract start.
• Completion of scheduled governance tasks per outsourcing governance plan (scheduling of meetings, status reports, signoffs, etc.).

Key Benefits

Proper outsourcing governance management will be driver for success of the outsourcing agreement. Benefits include:

• Highly effective communications between client and supplier stakeholders.
• Early warning and escalation of issues & problems
  Cost savings utilizing strong scope management

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