Challenges
- Ineffective processes leading to errors, wasted time
- Lack of visibility into existing contracts
- No consistency in application of RFX process
- Absence of metrics and statistics to measure effectiveness of vendors or team
- Inexperienced in IT outsourcing transactions since they previously did everything in-house
Solution
- Established an offshore team experienced in IT outsourcing procurements and contracts as an extension of client’s onshore team
- Created “operational” processes to bring consistency and understandability to some of the standard processes and practices.
- Introduced templates, checklists and standard language for various work products
- Suggested CLM technology be implemented to create visibility, accessibility of contractual information
- Helped develop SLAs to measure vendor effectiveness
Benefits
- 100% increase in contract knowledge exchange through highly explanatory, contract brief presentations
- Increased productivity and consistency of both the onshore and offshore team through creation and use of templates, checklists and processes
- Increased visibility and management of contracts through introduction of technology
- Created ability to perform contract compliance through the introduction of an obligation management program
RESULT: Decreased TCO by $560K per year through the introduction of offshore IT outsourcing specialists
by Nancy Nelson