TPI uses the TPI Outsource Value Framework™ detailed below, in assisting clients to:
- Prepare the business case for outsourcing;
- Select an outsource partner;
- Negotiate the outsource contract including SLA’s; and
- Put in place the performance management and governance frameworks to manage outsource performance.
The business case is the common thread throughout the process and is constantly updated with new information and re-evaluated at each stage of the process to ensure that the business case for outsourcing remains valid. The above process ensures that:
- The outsource partner selected is the one that can deliver the maximum business value to the client.
- The vendor evaluation criteria are built around the key business drivers.
- The contract is negotiated around the key business drivers, which form the basis for the SLA (service level agreement).
- Delivery against the business case is managed via the performance management framework which mirrors the SLA’s and therefore the key business drivers.
TPI believes in negotiating win-win contracts that are fair to both client and service provider, as this ensures a partnership based relationship that is sustainable. Strong contract governance and performance management is built into the process to ensure expectations are clear and performance is explicitly and rigorously managed. In addition the contract is constructed in a manner to ensure flexibility to cater for changing business needs, priorities, and scope. This is achieved by separating the legal and business terms (service model and levels) so that changes to the business terms can be applied without requiring changes to the core legal contract.
The TPI Outsource Value Framework™ together with TPI’s experience ensures that:
- The outsource approach is aligned to the business strategy.
- The SLA’s are aligned with the business drivers and performance is managed against this.
- Expectations, scope, and responsibilities are all clearly understood.