Best Practice in Governing Outsourcing Contracts: Establishing and Managing a Center of Excellence
Why Build an Outsourcing Center of Excellence?
For most companies outsourcing is an evolution. Maybe information technology (IT) is outsourced first and then the human resources or finance functions follow. As an organization gets comfortable with outsourcing, typically more and more discrete deals are put in place. These are managed by the different business units and divisions across multiple geographies, each with their own style and approach. Each of these groups possesses varying degrees of contract knowledge, governance, relationship management, reporting, risk management, opportunity identification and business case expertise. Often it is only when a portfolio becomes large enough to be on the radar of senior management that questions start being asked.
