It has
been stated:
Nonetheless,
structural risk can be mitigated in a number of ways. First of all, firms must
establish contractual clauses that will impose on the provider the obligation
to continue to deliver the service at a certain price after the contract’s
expiry date. Usually this period is 150% of the time that it would take for the
provider to deliver output that matches the organization’s requirements and
quality standards. Furthermore, companies should try to split business between
two or more providers. Working with multiple suppliers provides a strong
element of power for a company for at least two reasons. First, if a supplier
underperforms, it becomes easier to transfer the work to a supplier that is
already executing the same processes. Second, working with multiple providers
will generate a competitive climate among them that, if managed carefully, can
become very beneficial for the customer, both in terms of the quality of
service delivered and interms of price.[1]
[1] The
Handbook of Global Outsourcing and Offshoring [Book Edition], Ilan Oshri
(Author), Julia Kotlarsky (Author), Willcocks (Author) pp. 25-26.
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