Governance of Outsourcing

Outsourcing permits a focus on obtaining, retaining and developing the people and resources that create value and allows a shift in the management attention towards strategy and coordination. To do this the management and governance of outsourcing must become strategic competencies.

Approach

PreterLex provides a comprehensive four-phase capability across the outsourcing lifecycle that supports high performance outsourcing arrangements. We 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

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 puts in place steady state management that allows the client to extract full 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