On Managing the Vendor Relationship

Phase 1 Startup/transition:

Sign the contract. Outline expectations. Determine what work the outsourcing staff will handle.

Phase 2 Transformation:

Incorporate outsourcing vendors into work environment. Confront internal resistance.

Phase 3 Ongoing service delivery:

Manage the outsourcing vendor. Monitor SLAs.

Phase 4 Adjustment:

Modify agreement in response to changing business requirements.

SOURCE: JEFF O’HARE, SENIOR VP OF CORPORATE IT, CENDANT