We hear all the time about relationship and performance issues between the client and the service provider. That’s because service management and governance practices are relatively immature. At least that’s what our findings point to.
TPI conducted market research through its Governance Excellence Program and found out
the following:
-
Sixty percent of the teams deployed to manage
outsourced contracts had no prior outsourcing experience - Forty percent of
the respondents said they provided no initial training to the team staffed
for managing the outsourced contracts - Only 20 percent
of the respondents felt that sufficient training was provided to the
outsourcing management team.
While
outsourced relationships have certainly grown in size and volume over the
years, we find that there’s a significant lag in maturity of managing relationships
and contracts to results. There’s also considerable loss of anticipated value
from such contracts simply on account of the fact that no one is managing the
contract to performance and expectations tightly.
Institutionalization
of strong service management and governance disciplines and processes appears
to be a “past due” requirement. The pain can only increase as time elapses
given the increasing momentum and growth of the outsourcing industry. To fill
the void, we, at TPI, have started offering ongoing “Governance Services” to
our clients – a service that implements the discipline leveraging the
intellectual property of the firm and executes the processes on behalf of the
clients using an automated tool.
The
onus is on individual industry participants to take action. Act fast and
prevent further loss of value.
