The most popular outsourcing recovery reason time

2022-07-27
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Outsourcing recovery: reasons, time and how to recover

nowadays, the most controversial decision facing organizations is whether to outsource all or part of their IT business and operations to reduce costs and/or make them pay more attention to their own goals and core competitiveness

recently, this dilemma has become more complicated, because past experience shows that half of outsourcing contracts can not achieve the original business objectives, and will be suspended or modified in advance

the entire implementation report we have made clearly shows the recent trend: the previously outsourced it functions are taken back to the company and undertaken by the company itself. This report provides a set of effective guidelines for the recovery of outsourcing processes to reduce the tedious installation. On the one hand, it ensures that the IT organization can continue to support the company's business. On the other hand, when the outsourcing contract cannot reach the initial goal, the company can stop it

motivation for outsourcing recovery

outsourcing recovery is a process, which often involves challenges in law, human resources, technology, business operation and supplier relations. It may also require customer support, sales, and compliance issues

although people often compare outsourcing withdrawal to divorce, it does not necessarily mean the breakdown of the relationship or a hostile process. The reasons for a company to take back its it functions are often diverse

for example, many companies terminate the outsourcing relationship at the end of the contract because the company's strategy or view on outsourcing has changed. In other words, despite the best efforts of both outsourcing parties, the outsourcing contract still fails due to some structural obstacles, such as offshore factors or unrealistic service level objectives (SLOS)

even if the outsourcing fails because the outsourcer fails to meet the promise of obtaining exciting R & D results, a friendly "divorce" process is still crucial because it can protect the interests of the enterprise and preserve the reputation of the outsourcer

historically, it is often driven by economic and environmental factors that the peak of outsourcing demand turns. Similarly, the demand for reverse outsourcing contracts is often rising with the economic recovery. At this time, the company wants to take back its control over it business, so as to raise funds for new business

a successful strategy

as the role played by it will affect almost every aspect of the company's business, the company's recovery of it business will have a direct impact on the company's performance. Application system response time delay or operation downtime will have a negative impact on customer satisfaction, partnership and employee productivity

therefore, a successful outsourcing recovery process is crucial. The most important point is that the company is ready to take back when outsourcing. Finally, the organization must develop an outsourcing strategy and a set of contract management processes, so as to have the opportunity to actively end the outsourcing relationship and take back the ownership and responsibility for it operations

of course, it is also important not to regard outsourcing as an "either or" decision. In other words, companies should not either outsource all their IT operations or take them back. The combination of the two may be the most logical and promising outsourcing strategy

as shown in the following list, communication is often the most critical element in outsourcing recovery. Communication should include automated reporting systems and regular meetings between the company and outsourced personnel

the report details ten important steps for successful outsourcing recovery:

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1. take the initial outsourcing strategy and screening process as the starting point

2. decide which functions to outsource according to the outsourcing strategy

3. select an outsourcer with successful outsourcing recovery experience

4. write the outsourcing recovery process into the outsourcing contract

5. formulate clear and measurable SLOS and service performance responsibilities between the parties to the contract

6. develop regular reporting policies, procedures and collaborative problem solving processes

7. establish procedures so that problems can be found as soon as possible before they become serious

8. formulate detailed terms for suspending or modifying outsourcing contracts and withdrawing outsourcing processes

9. establish a transition methodology for suspending/withdrawing outsourcing

10. hire experienced outsourcing recovery lawyers and consultants

The

methodology and regulatory

report provide detailed steps that the organization should take to ensure a smooth transition during handover. The most important step is to inform the outsourcer that the company is preparing to take back the outsourcing process. This is not only to comply with contractual responsibilities, but also this open approach can lead both parties to correct problems and make decisions as soon as possible, so as to restructure all or part of the company's outsourcing contracts, or at least enable both parties to take back the outsourcing process with a more cooperative attitude

the next step for the organization is to perform current operational audits and assessments, develop a project plan and schedule, and decide on the reassignment of personnel. In the outsourcing recovery plan, the most important element is to formulate some policies and procedures to ensure that the security of private information, private records and intellectual property rights can be smoothly transferred to the enterprise without damage. For public companies, it is also an important step to actively communicate with internal personnel, customers, partners, suppliers and investors

part of the process also includes the establishment of a governance committee to be responsible for supervising the transition process; It should include the company's executives. The company mainly relies on technological innovation, model innovation and financial innovation to support and serve the transformation and upgrading of the petroleum and chemical industry and end-user representatives, outsourcing relationship managers, key suppliers and business partners, so that they can assume the responsibility of supervising the initial outsourcing contract. This dual role can ensure the continuity of outsourcing recovery transition stage

in short, it is important to be down-to-earth. In the face of so many outsourcing failures, it is imperative to formulate a clear exit strategy that can enable the organization to recover its it functions smoothly. (end)

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