Typical Engagement

Outsourcing management costs will vary based on the size and complexity of the outsourcing contract. Generally, our outsourcing management fee will be less than 5% of the outsourcing budget. For a mid-sized outsourcing deal (approximately $10 million annually), the management staff we recommend is as follows:

• Project Executive that will focus on governance and who has overall management responsibility for the outsourcing deal
• Project Manager/Analyst that will develop and maintain project plans, develop performance analysis reports, and maintain contract documentation
• Financial Analyst to perform all the financial service functions, including invoice review and analysis, chargeback, budgeting, variance reporting and analysis, etc.

For the transition phase, this staff will be supplemented, normally with additional project management staff, sometimes with specialties in technical areas required during transition.

As deals grow larger, or with multiple outsourcing deals managed with the service, the team will be supplemented as appropriate for the workload.

The staff will be people with a high degree of experience in outsourcing. All will have either spent many years with an outsourcing company, or will have extensive experience managing outsourcing agreements as a client of the sourcing supplier. Typically, the Project Executive will have a background with an outsourcing company leading outsourcing contracts of significant size ($10 million annually or greater).

Additionally, clients who already have employees who manage outsourced contracts may choose to transition those employees to Outsourcing Management Services. This can be a very beneficial situation for both the client and ourselves. It will allow us to gain valuable experience with the client's business, and will allow the transitioned employees to learn the tools and processes necessary to more effectively manage outsourcing agreements.

Fees

Our outsourcing management fees are generally fixed, and will only vary based on large increases (or decreases) in the scope of the outsourcing service provided by the supplier that require additional (or decreased) management staff. We are however, always open to any fee structure that will best meet the requirements of our client.

Generally, our fees will not exceed 5% of your outsourcing contract budget. The fee will be negotiable based on services we provide and skill sets you require for a particular outsourcing contract.

Our clients will always have final approval authority for any individual assigned to manage their outsourcing contract(s).

Key Benefits

• Outsourcing Management Cost savings
• Improved controls on outsourcing contract, financials, and service levels
• Improved user satisfaction
• To ensure prudent management, we include service level agreements for the service we provide

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