How to Effectively Manage Outsourcing Contracts
Analysis
MENA outsourcing revenues are predicted to hit US $2.69 billion by 2016 (Frost & Sullivan). Across the region, commitment to outsourcing can be observed with the Kingdom of Saudi Arabia forecasting that more than 50% of its ICT needs will be fulfilled by outsourcing companies by 2016. In the UAE, the dedicated Dubai Outsource Zone (DOZ) has announced a 15% growth rate throughout 2012.
Successfully managing an outsourcing contract requires customers to include the right governance tools and mechanisms in their contracts and then use those tools appropriately.
Contract tools provide the customer with leverage in managing the outsourcing contract. Customers should use these tools knowingly with a view to the potential impact on the supplier relationship.
Understanding how to use contract tools can optimize the outcome of the relationship for the customer, who will be empowered to:
• Manage the supplier relationship to ensure issues are resolved quickly and opportunities are maximized.