Outsourcing Sourcing Management
Sourcing Management

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:

  • Are your resources trained to manage ESPs?
  • Is there a established governance structure to which all parties agree? 
  • Are you measuring SLA compliance on an on-going basis?
  • Is there a sourcing management performance dashboard / metrics by which all parties measure their performance?
  • What is your assessment of your relationship with the ESPs?

The challenges for the ESPs:

  • How do I meet my SLAs and avoid penalties?
  • How do I ensure that I am evaluated objectively and fairly?
  • How do I make operational issues known to my client when there are SLA breaches?
  • How do I effect changes to the governance process because of the established one does not work from the ESP's perspective?

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.

We provide:

  • Baseline organization for your SMO
  • Documented governance and processes
  • Industry standard SLAs and OLAs
  • Sourcing management dashboard
  • In-country embeds in ESP organizations
  • Periodic assessment of relationship status between the client and their ESPs through quantitative and qualitative metrics

Our sourcing management framework focuses on both services and relationship work streams to ensure successful partnership between clients and ESPs.

Sourcing Management Framework

Sourcing Management Framework