Analogies are often made between outsourcing and marriage – both require commitment over the long term, patience, understanding, etc. I have heard others say an outsourcing relationship is like having teenagers in your house.
I would like to take a different spin on this: outsourcing is like cooking. More specifically, a successful outsourcing transaction is like a gourmet meal prepared in a fine restaurant, in the sense that both require a range of expertise and skills, as well as collaboration of a variety of team members involved in the preparation.
For cocktails, consider your key objectives and priorities – are they to get the lowest cost? Get an agreement quickly? Ensure buy-in of the business?
The appetizer course typically requires an advisor perspective, to determine how best to facilitate the collaborative process.
For the entrée course, you need to negotiate the Master Services Agreement and related Exhibits in an effective and cost-efficient manner. This requires legal expertise as well as business expertise and insight into what metrics are aligned with business objectives, and what service levels are most appropriate.
Think of dessert as a post-transaction exercise, where you consider the transaction process you just went through and identify positives as well as areas for improvement.
Finally, relax with scotch and cigars – share your lessons learned with peers and colleagues, both good and bad, and you’ll all benefit.
My colleague Clay Calhoun and I will be taking a gourmand-centric approach to a discussion of sourcing transactions as part of the Service Delivery Life Cycle at the upcoming ISG Sourcing Industry Conference, which will be held September 9-10th in Dallas.
