Establishing Standards and Managing Expectations

All outsourcing contracts should not only define what work will be done by the outsourcing vendor, but what results are expected and how they will be measured. In order processing, for example, the contract might define the turnaround time from input to output, the maximum percent of errors that would be acceptable, and the cost to the client if the vendor has some control of that. For an outsourced help desk function, the standard might specify the maximum response time, the percent that needs referral to a second technician, and feedback from the users as to their satisfaction with the results.

While these performance standards should be in the contract, as the work gets underway, there may arise additional factors to be considered and adjustments and clarifications that need to be made to keep the standards practical and current. The refinements should be negotiated between the liaison representatives and others concerned, with the agreed new terms put in writing to confirm the agreement and to inform all concerned about them. Since the contracts often run for several years, the changing needs of the client, such as new products and new markets, and changing vendor conditions, such as new hardware or software or location, frequently create the need for revisions to the expectation results.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook


Post a comment