Sourcing Management and Sourcing Management Office (SMO) establish a set of activities and performance objectives to keep external service providers (ESPs) operate in line with your business. Sourcing Management generally applies to service delivery organizations where services are subject to periodic reviews and service level agreements (SLAs), established during the contracting phase.
The challenge for the clients:
The challenges for the ESPs:
Our solution to these challenges starts with constructing a SMO with established governance structure. The governance structure includes your extended organizations and documents a list of processes, dependencies and operating model to create an entity that has oversight over the outsourcing relationship. Clients make frequent mistakes by holding ESPs accountable only to their SLAs. Because SLAs do not address day-to-day operational issues, the hands-off relationship with the ESPs can quickly turn sour costing organizations in productivity, time, and eventually in prohibitive transition costs.
Our sourcing management framework focuses on both services and relationship work streams to ensure successful partnership between clients and ESPs.
Sourcing Management Framework