Assess Your Situation
So many variables make navigating outsourcing contracts challenging and confusing. Do you stay the course and renegotiate with your current service provider? Do you look for a different provider – or a collection of providers? Should you bring outsourced services back in-house?

The best way to keep on track is to consider your options before the end of your existing contract approaches. Ideally, you should put your contract end strategy in place well in advance of  the end date — or the moment that your needs are no longer being met.

The first step is to carry out a review of the sourcing strategy by looking back at what has been provided throughout the life of the contract, and by looking ahead at future needs.

Look Back: What Has Your Current Contract Delivered?
Review performance levels both internally and with the service provider. Determine whether the original objectives have been achieved, and if not, why not. Find out whether your organization is happy with the current service provider, and review the skills that were available to manage the service provider. The success or failure of outsourcing is dependent on good management and the governance structures which have been put in place.

Look Ahead: What Do You Need?

You must be able to recognize potential areas of change. Only then is it possible to pinpoint disparity between current services and those that will be needed in future. Think strategically rather than simply delivering existing service levels as efficiently as possible.

What direction will you take? Learn more about this topic by reading the materials presented here, or jump start your efforts and contact an EquaTerra advisor today.