Contract Governance

To outsource effectively, outsourcing must become a core capability

Outsourcing is not just about cost reduction, its about understanding the benefits and obligations of a strategic partnership - but more importantly its about how to ensure that your organsation can develop the capability to manage and receive the best value possible from your outsourced sevice provider.

Our governance of outsourcing capability is built on:

• Contract experience scaling from 1 to 60 countries (up to 925 subsidiaries) and up to $1.2b lifetime contract value
• Experience of outsourcing across industry sectors including financial services, industrial gases, pharmaceuticals, FMCG, public services, utilities and oil

 

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What we do

PreterLex provides a comprehensive four-phase capability across the outsourcing lifecycle that supports high performance outsourcing arrangements. We can help you achieve this through:

• Strategic review of outsourcing, change management needs and execution of transition and transformation
• Assessing value of outsourcing, business change and business case
• Assisting and guiding the tender process and provider selection
• Developing the contract structure - including contract schedules and management handbook
• Planning the execution of transition and transformation
• Defining and applying corporate governance principles to all outsourcing assignments

 

Our Outsourcing Lifecycle Capability

 

Pre-Signature

We ensure that the relationship between the client and the provider is clearly articulated and founded on best practice, through a proven capability to:

• Develop the contract for signature
• Define and agree SLAs, OLAs and develop operational processes
• Negotiate transitioning phase service and payment terms
• Create transition and transformation plans and define success, bonuses and penalties
• Establish consensus on defined responsibilities
• Outline and confirm governance architecture, processes and environment

 

Transition

During the handover, that is, the movement of staff and services to the provider, we ensure that the client transfers only what is necessary and expects from the provider what is sufficient and required to ensure a mutually beneficial relationship. PreterLex will:

• Liaise with HR to identify key knowledge and skills for retention, acquisition or transition
• Ensure that the movement to service management is completed
• Monitor services to be delivered to new SLAs and OLAs
• Identify quick wins
• Implement a governance framework for monitoring outcomes

 

Transformation

To ensure that the benefits of the outsourcing decision are clearly focussed and delivered during the contract timescales, and that the required business and operating model changes are made effectively, PreterLex will:

• Facilitate and confirm that appropriate governance processes are embedded
• Report independently on services launched and operated
• Monitor benchmark and baseline status
• Verify value proposition and advise on benefits management
• Audit assets to ensure alignment with outsourcing proposition
• Oversee the transformation sign-off process

 

Steady State

PreterLex supports the client's management team in reconfiguring the management responsibilities and style to enable optimal delivery of value, on an ongoing basis, from the contract through a series of activities that:

• Continually review the contract to determine strategic options
• Analyse and propose strategic contract expiration options
• Evaluate benchmarking and baselining decisions
• Analyse the relationship gaps and establish corrective processes and structures

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