How to Prevent the Outsourcing Procurement Process From Breaking Down

 How to Prevent the Outsourcing Procurement Process From Breaking Down


There is little doubt that the suitability and integrity of an organization’s sourcing requirements is critical to identifying and selecting an outsourcing service provider business process manager jira

aligned with the company’s business strategy and that minimizes operational and financial risk over the life of the sourcing relationship.

Research finds that when organizations struggle to develop sourcing specifications, one or more of the following conditions typically exist:

Lack of traction within the team assigned responsibility for drafting the document

Poorly defined client/provider roles and responsibilities Lack of clarity around statements of work and resource baselines

Misaligned service level metrics and measurements

Application of inappropriate pricing frameworks

Increased exposure to operational and financial risk

Susceptibility to unforeseen “time traps” that occur late in the procurement process

When organizations don’t execute the correct procurement steps in the right sequence, there is significant risk that the procurement development process will break down and/or the sourcing requirements developed will not achieve expected benefits. So what procurement steps and sequence should organizations consider in developing their sourcing requirements?

Step 1: Retained Authorities

Procurement development is a multi-step process that starts with a clear and unambiguous definition of retained authorities.

Retained authorities, also referred to as “The Keys to the Kingdom,” represent client responsibilities that are rarely, if ever, outsourced to third parties. Organizations must define in specific terms what will be sourced to third-party providers and what will be retained by the client organization.



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