Ongoing Training On Outsourcing Agreement For Retained Staff Is Critical, Says Alsbridge

DALLAS, February 4, 2009 –Veteran outsourcing advisory companies have seen one constant across hundreds of contracts: the consistent need for training on the outsourcing agreement for the retained staff.

Training the retained organization produces effective outsourcing agreements, said Ben Trowbridge, CEO of Alsbridge, Inc., the leading outsourcing consultancy. “Retained organizations that have been trained on the details and day-to-day operations of the agreement are much more likely to achieve their outsourcing objectives,” he said.

Mr. Trowbridge said three common events reinforce the need for educating the retained organization: change orders and the change control process, reports, and governance.

Change Orders - The outsourcing agreement stipulates a particular process for change orders. A large number of change orders can indicate a poorly crafted Statement of Work, or that the person submitting the change order doesn’t know what is contained in the base services.

Not educating the retained organization about change orders can foster predatory behavior by the provider, such as taking advantage of client ignorance or manipulating the process. When the provider performs an unapproved and undocumented change, the result is chaos, relationship problems, failed audits and invoice discrepancies, Mr. Trowbridge said.

Reports - Interpreting reports requires an understanding of how they apply to the overall agreement. Every agreement contains mechanisms associated with the timing of reports. A poor grasp of the reporting cycles and notification periods creates ambiguity and leads to inefficiency and failed objectives. Notification requirements are often overlooked in an agreement, Mr. Trowbridge said.

Governance usually either evolves naturally from client/provider relationships, or the organization writes structure and expectations into the agreement. Operationally effective organizations have stronger governance models contained in the agreement, and the retained organization is well trained. By contrast, ineffective governance models hinder operational effectiveness due to untrained and inexperienced retained organizations, Mr. Trowbridge said.

The Alsbridge article, “The Significance of Effective Retained Organization Training,” is available at http://www.outsourcingleadership.com/significance-jan27.shtml.

For more information on outsourcing advisory services, contact Alsbridge at 214-696-6410 or visit www.Alsbridge.com. For more original research and insight on outsourcing topics, visit www.OutsourcingLeadership.com.