Tuesday, February 25, 2014

Direct Supervisory Authority And Making Systematic And Rigorous Legal Process Outsourcing Decisions 10

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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