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Outsourcing risk advisory
A matter of end-to-end control and mutual trust
The increasing trend to outsourcing activities entails a number of important decisions. It equally requires the management of a large variety of issues. Active risk management can substantially reduce internal, external, and market performance risk exposure while allowing the organisation to obtain the main benefits of any outsourcing initiative.
- Outsourcing risk advisory methodology
- Phase I - Outsourcing strategy
- Phase II - Outsourcing diagnose
- Phase III - Outsourcing contract
- Phase IV - Outsourcing transition
Outsourcing risk advisory methodology
Deloitte is uniquely positioned to assist your organisation in managing and mitigating these risks throughout the complete outsourcing life cycle.
Our Outsourcing Risk Advisory Services offers a phased methodology in which separate workstreams provide a structured approach for ensuring end-to-end outsourcing control.
Phase I – Outsourcing strategy
Two developments drive outsourcing strategy to be closely aligned with business strategy: the increased need for regulatory compliance and the growing demand for effective risk management.
Phase II – Outsourcing diagnose
The success of many projects often is dependent on two ‘early’ critical success factors. On the one hand the initial requirements should be well documented and communicated to all stakeholders. On the other hand these requirements should be well understood by the receiving parties so they can translate them in an effective proposal. The success of a common outsourcing trajectory is very similar. It is the basis for future trust.
Phase III – Outsourcing contract
An outsourcing contract should not only unambiguously reflect all involved parties’ intent; it should equally be used as an important working document during the subsequent phases. The contract should hence be developed in such a way that all associated outsourcing risks and modalities are well translated into contractual terms and conditions based on objective criteria. Hence, a well structured outsourcing contract should reinforce trust.
Phase IV – Outsourcing transition
Transferring organisational assets from one organisation to another is not “your everyday activity”. All involved organisations should, first of all, be ready to transfer the contractually agreed services or activities and secondly,
should plan well in advance the transition life cycle and process.
Phase V – Outsourcing execution
A crucial phase in any project is the executing or running phase of the project. This not only implies that all involved parties must be ready to execute the project, but also implies that continuous change and improvement will indeed happen throughout the project. When it comes to outsourcing projects, being fully ready to execute is key to a successful trust relationship.
Phase VI – Outsourcing exit
All contracts come to an end, whether on a planned or unplanned date. Having a clear contractually agreed exit strategy guarantees flexibility with the vendor. It indicates your mutual level of trust.