MANAGING THE OUTSOURCING PROJECT
Governance
Governance provides the set of guidelines for the relationship and a forum for dealing with legal and service issues. Effective governance will help to ensure that the supplier delivers on what they have promised over the lifetime of the agreement. Absence of strong governance results in a lack of clarity about the goals and results of the outsourcing.
As governance typically costs between 3% and 6% of contract value, at the higher end at start-up and lower over time, make sure it is included in the original costings.5 It is not a peripheral activity.
The key to good governance is a good governance team of high-level executives from both organisations who communicate regularly about what is working ...
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