Upfront: 7 Steps To Success in Outsourcing

How companies with deep outsourcing experience maximize benefits.

Organizations entering into their first outsourcing arrangement often confront a steep learning curve. If they miss important details in negotiating the contract or in monitoring the outsourcer's performance once the partnership is under way, the agreement will likely not live up to expectations.

The good news is that a recent Accenture survey of more than 500 executives in companies with at least two years' outsourcing experience identifies seven critical strategies that can help outsourcing novices get the most out of a deal without resorting to trial and error.

1. Monitor a broad range of business outcomes. Although cost savings are a significant driver of outsourcing initiatives, experienced decision-makers take a wider view of the potential benefits and use a variety of business-outcome metrics -- for example, increased speed to market, improved profitability and lower working-capital requirements. Sixty percent of the survey's respondents build these business outcomes into the outsourcing agreement from the beginning.
2. Hire a partner, not just a service provider. The qualities that survey respondents look for in their outsourcer include flexibility (81 percent) and industry knowledge (75 percent). Nearly three-quarters also cited the service provider's ability to earn their trust as an important quality.

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