10 important actions to managing out sourced service provider’s.

Many services are out sourced these days from catering, pest control, laundry,   printing, mail services, accounting, payroll, marketing, maintenance, grounds, cleaning and the list goes on…. Just about all company’s and organizations have out sourced one or more of their support services . The consequence of out sourcing services ranges from it being;   very successful and efficient, to very frustrating, difficult and not cost effective. Organizations that have been successful out sourcing a service or services get: good quality, excellent customer service, effective service delivery, accountability and effective cost management.  Without exception they will have all done the following things well:

1. Scoped and documented the service being out sourced.
2. Adopted a robust and thorough tender and selection process.
3. Contracted the service provider to deliver on the promises in their   proposal.
4. Included incentives and penalty clauses.
5. Created flexibility so as the organisation’s service need changes so does   the contractor.
6. Developed appropriate KPI’s.
7. Demand transparency but allow a fair profit margin on good service.
8. Measure the service provided with independent audits.
9. Maintain good communications and reiterate the area of focus.
10. Track performance throughout contract term and retender periodically.

These can be broken down into three groups – Before tendering, the tender process and then contractor management.

For more information on service contract management or assistance with the above 10 success points contact me at mark@markcollins.co.nz

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Mark Collins