Summary:
A key challenge for any organization undertaking ITO or BPO is to ensure that the goals of these efforts are actually achieved. These goals, often a combination of cost reduction and process improvement, are generally called out in contractual arrangements or service level agreements (SLAs) between buyers and service providers. Organizations often ?nd it challenging to capture these goals in a legal contract, and an increase in performance-related – and subjective – goals from outsourcing, such as the ability to shift focus to more strategic activities, makes it more difficult to measure success against these goals.

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