Sample Term Paper

The outsourcing process has three phases with various steps which are undertaken in order for the outsourcing process to be successful. These three phases in outsourcing process are Strategic phase, Transition phase and Operations phase.

Strategic phase

This stage deals with investigations and evaluations that will determine the activities to be outsourced. The activities to be outsourced must adhere to three drivers; quality, time and costs. The key drivers will be used to measure the activities against the evaluation criteria. Once the company is satisfied with the activities chosen an outsourcing partner is selected (Business Advice – America Central, 2005).

Transition phase

In this phase the contract is drawn up between the company and the outsourcing partners. The contract should take into account some key aspects such as; volumes and activities to be done, prices and rates structure, dispute resolution, management of activities, continuation after termination of contract, communication and reporting activities and service level agreements (Business Advice – America Central, 2005).

Operations phase

During this phase the company should maintain a good relationship with the outsourcing firm to ensure success. It is important that both parties ensure good communication procedures, respect with each other, and trust each other during the duration of their contract.

Once the contract is terminated both parties should still operate independent of the other. The contract should therefore cater for the termination conditions. This will prevent legal claims by one or both parties due to disagreements brought about by a poorly drawn contract (Business Advice – America Central, 2005).

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