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Structuring Governance in Outsourcing Contracts

Product Type: Market Research Report
Published by: IDC
Published: December 2006
Product Code: R104-28959
Description

This study IDC discusses the importance of creating a robust but flexible governance model to meet the changing needs of both the end-user organisation and service providers (SPs). This study highlights some best practices in defining the governance framework, especially within multisourced environments.

"It is critical for organisations and SPs to invest in relationships. The governance process should be structured by assessing current priorities, investments, progress milestones, and challenges at the very outset during the negotiation and contracting phases of outsourcing relationships," says Aprajita Sharma, research manager, Outsourcing and Business Process Outsourcing (BPO) Research, IDC Australia.

Table of Contents

Table of Contents

IDC Opinion

In This Study

Situation Overview

Governance Issues and Changing Outsourcing Dynamics

Figure: Criteria Used to Measure the Value of an Outsourcing Relationship

Figure: Perceived Problems Resulting in the Failure of Outsourcing Contracts

Addressing Multi-Sourcing Challenges Through Operational-Level Agreements Within the Governance Framework

Defining Operational-Level Agreements

Figure: Structured Governance

Establishing Operational-Level Agreements

Figure: Operational-Level Agreement Framework

Structuring the Programme Governance Office

Figure: Programme Governance Office Trends

Essential Guidance

Actions to Consider

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Related Research

Synopsis

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