Learn to Manage Your Outsourcing Relationship with an LMS Online Course

A company's executives should approach outsourcing relationships in a way that corresponds exactly to the company's short- and long-term objectives.

A key concept that an LMS course teaches executives is that good ORM involves a proactive strategy in preventing failure. Instead of simply measuring, tracking, reporting measures against targets, and penalizing the service provider, executives should use that information to manage future performance. That way, when systems or processes are showing signs that they are heading towards failure, they can be eliminated or changed before the problem actually occurs. A proactive approach has higher rates of effectiveness than any carrot-and-stick strategy. It will also help to root the major causes of dysfunctional or unsatisfactory outsourcing relationships.

A complete online course in ORM deals with the three areas of concern in BPO transition and ORM, which are management strategy, organizational structure, and IT infrastructure. Management strategy refers to identifying the best service level agreement and relationship techniques for your business process outsourcing strategy. Organizational structure refers to developing the appropriate in-house management, or the oversight structure and mechanisms. Finally, IT infrastructure is the supportive IT infrastructure which enables the monitoring and management of a network of external service providers.

Management strategy involves a critical element: contract management. This includes tracking, measuring and ensuring results, tracking, penalizing and preventing failure, and developing performance measurements. These measurements should not only address current performance, but also respond by providing proactive solutions and predictions. Contract management also involves a quality assurance approach that governs the processes and the service delivery of a BPO group. Remember that the outsourced service provider has a vested interest in achieving results, just like the company is it servicing.

Since service provider contracts are often transitory, they should specify responsibilities and processes of the BPO transition term. Generally, the contract with an outsourced service provider should include provisions for performance management, and the contract language should be flexible, allowing for changes as they become necessary.

See Related Post: LMS Courses Help Proactively Manage Your Outsourcing Relationship