STEP

TASKS OF MANAGEMENT TEAM

Planning the Offshore Strategy

• Access risks

• Announce initiatives
• Form project team
• Engage advisors
• Train the project team with latest information
• Address issues that can impede strategy planning: resource management, information management, project management
• Set objectives and goals

Exploring Strategic Implications

• Understand organization’s vision, core competencies, structure, value propositions, and strategies

• Determine decision rights, contract length, termination date, and cancellation policy
• Align offshore initiative with other internal initiatives

Analyzing Costs and Performance

• Measure activity costs

• Project future costs
• Measure current performance
• Measure cost of poor performance
• Benchmark costs/performance
• Determine specific risks, asset values, total costs, pricing models, and goals

Selecting a Vendor

• Set qualifications

• Set evaluation criteria
• Identify providers
• Draft RFP
• Evaluate proposals; qualifications, costs
• Performa due diligence
• For each proposal determine “Buy” total costs Shortlist providers
• Review finalist provider with senior management

Negotiating the Contract

• Plan negotiations

• Address high levels issues and deal breakers
• Negotiate contract: scope, performance standards, pricing schedules, terms and conditions
• Prepare service level agreements
• Implement internal communication plan
• Announce contract

Managing the Transition

• Adjust team roles

• Define transition plans
• Address transition issues: communication, human resources, other factors
• Meet with employees: organization and vendor
• Make offers or begin terminations
• Provide counseling
• Physically move

Governance

• Adjust management styles

• Create governance council
• Communicate
• Define and design reporting; meeting agendas, meeting
• Schedules, performance reports, dashboard reports,reporting schedules
• Measure performance
• Confront poor performance and improve performance
• Relationship management – build the relationship