Process of outsourcing are as following:
Planning for Outsourcing: The first stage of this process can be seen as planning for outsourcing. The various related risks are analysed by the management and then some actions are declared. Some advisors are appointed and team is provided with the required training. Different resources are grouped and the various issues related to the information management and resource management are tackled effectively. Eventually, the goals are decided upon. Different types of strategic possibilities and the consequences are analysed. There is a complete study of organisational vision, structure, value chain, competencies, strategies, and transformational tools.
Determination of Contract: The issues such as the determination of contract, its termination date, rights, etc., are ascertained and ultimately the initiatives are combined.
Analysis: The main focus of this stage is on the performance and cost. The cost of the activity and the cost of failure of project, both are estimated in this Stage. Cost of poor performance and measurement Of performance are calculated simultaneously. The standardisation Of both cost and performance is done. At last, risk assessment, valuation of assets. determination of total costs and pricing models, and final targets are completed.
Selection: The selection of the service provider is done by the firm under this stage. Different types of qualifying and evaluation bases are determined. Various service providers are identified and their screening is done. Drafting of request for proposal (RPF) is done and depending upon the costs and qualification criteria, different proposals are assessed. Lot of care is taken in the entire process. The determination of total cost of buying, short listing of service providers, and final selection is done at the end of this process. Ultimately, the senior management reviews the entire process once again.
Negotiation: The proper planning is done for the negotiations; various issues are settled down, preparation of term sheet is done and finally the negotiations take place. A relationship is declared if everything goes as per the plan.
Transition of Resources: The next stage is to ensure transition of resources. As per the transition plans, the team roles are modified and evaluated. Different issues related to transitions are resolved. There is a formal meeting of employees, and offers and terminations occur. The counselling is done for those who are selected and finally taken to the client location.
Managing the Relationships: Finally, a relationship is built. Management of this relationship is the last stage. There will be some modifications in the management style and a supervisory council is created. Agendas are defined and designed, and finally scheduling and actual performance happens. Different supervisory roles are carried out, below par performances are tackled, and solutions are sought. Ultimately, an outsourcing relationship is established.