March 3, 2006

Contract Management In An Outsourcing Deal

Project Case Study: Managing Obligations With Digital Fuel ServiceFlow

by Paul Roehrig, Ph.D.

with Christine Ferrusi Ross, Thomas Mendel, Ph.D., Olivia Ester, Leigh Powers

Executive Summary (This is a document excerpt)

You've just spent a year (or more) to get an outsourcing contract signed, and ink is on the stack of paper — sometimes more than 1,000 pages deep. But now reality has set in: How are we going to manage this? In many outsourcing deals, the measurement of service levels and key performance indicators (KPIs) usually takes most of the management focus prior to contract signature; but managing outsourced services is about much more than service-level agreements (SLAs) and KPIs. Both vendors and customers need to select and implement processes and tools to ensure that obligations and expectations for all deliverables and services can be met. Digital Fuel's ServiceFlow is a software application designed specifically to aggregate deal-specific data from multiple sources, including SLAs, finance, project deliverables, etc. Forrester investigated how Siemens Business Services (SBS) uses Digital Fuel to help manage an outsourcing contract with a large UK firm.

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