The most effective outsourcing model occurs when you develop a strong partnership with your supplier, hold regular high-level strategic reviews, and implement a process for continual improvement that is underpinned by both performance and client satisfaction measures. Maintaining quality, transparency, confidentiality and anonymity is paramount for a successful outsourcing relationship. Any improvements in your products and services should be a reflection on you, not your provider. Through evaluation of the cost savings help to ensure that expense reductions do not come at the sacrifice of increased operational risk or negatively impact client services.

Top ten reasons:

1.      Reduce and control operating costs.
2.      Gain access to new technologies
3.      Lack of capitol investment dollars required for technological enhancements
4.      Meet the new demands resulting form pending check truncation legislation
5.      Accelerate reengineering benefits
6.      Improve company focus on core competencies
7.      Streamline functions difficult to manage
8.      Minimize operating risks

Important hallmarks of a successful outsourcing relationship include:

1. A shared vision concerning the outsourcing outlined in the Service Level Agreement or other contractual arrangements.

2. Effective performance measures that motivate your provider to ensure that it’s actions serve your business objectives.

3. Clear communication mechanisms.

4. A comprehensive contingency plan and exit strategy.

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