Business Process & Knowledge Process Outsourcing Contracts
Getting Down to the Core Business
Focusing on "core" business and outsourcing operations to third party service providers have now become standard business practices for even the smallest companies. Outsourcing will only spread as the world enters the Web 2.0 age. While outsourcing of legacy IT operations is nothing new, companies are now realizing the benefits of outsourcing business operations and management functions like HR and Procurement as well, including employing their staffs indirectly through a third party professional employer organization (PEO) to eliminate overhead and liability.
Outsourcing makes for a highly complex business transaction because it has so many dimensions and variables. Off shore and near shore outsourcing refer to the international reach of outsourcing, with its multi-jurisdictional legal issues. Multi-sourcing and strategic sourcing involve multiple, interrelated services contracts. Business process and knowledge process outsourcing raise hard to measure quality of service issues.
Outsourcing Contracts Layers Analysis (OCLA) is a comprehensive view of outsourcing that identifies all of outsourcing’s dimensions and complexities. Using OCLA, James River can approach outsourcing transactions with an unclouded view of how they should be structured and what terms they should contain.
James River's Outsourcing Contract Layers Analysis (OCLA)
James River's Purpose Driven View of Outsourcing Models
Purpose Driven Outsourcing ™
James River distinguishes itself from other management consultancies that tell clients successful outsourcing is impossible without a heavy layer of governance at the top. How can the client know if it’s true or how much to spend on governance?
Purpose Driven Outsourcing ™ is a methodology for helping the client determine optimum outsourcing models by first looking at the goals driving the outsourcing. Rules are then applied that align the goals with outsourcing vendor selection, services management, contract terms and corporate outsourcing strategy. Using Purpose Driven Outsourcing ™ companies can avoid value averse outsourcing practices like sole sourcing and extended captive outsourcing contracts. Competition can be used to its full benefit and value realized throughout the outsourcing life cycle.
Instead of taking a top-down approach, Purpose Driven Outsourcing ™ identifies the key differences or discriminators between how outsourcing methods serve business goals. Some outsourcing models are heavy on discriminators that only exist lightly in other models. The methodology then addresses the outsourcing process as a life cycle. The actual outsourcing practices that will be followed are then developed and carried out, either by the client or by James River on the client’s behalf.
Purpose Driven Outsourcing ™ has been written about by James River in a number of popular industry magazines and on several outsourcing Web sites. We expect to publish a book on the methodology sometime in 2009.