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Always Maintain Control 

In a Financial Post article, KPMG's IT Advisory professionals describe how to avoid the pitfalls of "set and forget" and forge effective outsourcing service agreements

 

PDF Always Maintain Control (208 KB)

* This article originally appeared in the Financial Post on February 17, 2009

As companies across Canada pause to do strategic reviews and respond to new economic realities, one option they may be considering anew is global outsourcing.

 

Global outsourcing can help reduce costs and improve customer service, while giving access to expertise that does not exist within the company and freedom to focus on core competencies. Yet, according to industry estimates, at least one in four outsourcing relationships fails to meet customer expectations.

 

In "Always Maintain Control," Yvon Audette and Vipin Gupta of KPMG's IT Advisory practice describe four proactive approaches for more effective outsourcing service agreements:

 

  • Maintain the right stay-back team
  • Design and execute a good governance model
  • Develop a robust risk-management framework
  • Create a win-win situation for both parties by pricing the contract based on market comparables.