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Checklist for outsourcing

  1. Human resources - ensure fair and equitable treatment of all team members affected by the decision, provide a degree of certainty about the approach to be adopted so as to assist all relevant parties to make appropriate decisions in relation to staffing matters, seek to maximize a harmonious working environment and minimize the potential for dispute during the changeover to a different vendor, maintain the viability of functional areas during the outsourcing process, ensure that related processes are focused on achieving the best value for money, ensure that team members are aware of what constitutes ethical standards and behave ethically in relation to the outsourcing of operations
  2. Contracts - competitive tendering and contracting for delivery of the designated services, contract for services is actively managed with reference to performance and service delivery standards, risks and rewards of outsourcing especially with regard to accountability, final evaluations are performed at the end of the contract term which should be used to assess future tenders or extension of contracts.
  3. Planning - ensure proper planning procedures are in place which will allow outsourcing opportunities to be identified, plan iterative steps in service implementation
  4. Service - ensure performance and service standards have been separately identified for different functional areas, ensure that responsibilities for decision making on whether to outsource or not is with team leaders of appropriate competencies & who are sufficiently independent of the functional areas affected, maintain standards of access, equity and privacy, contract management procedures are in place with responsibilities allocated to team members with the appropriate competencies and experience, reporting structures established.
  5. Measurement - key performance indicators have been developed from performance & delivery standards established, ensure the costs of the functional areas are known & have been properly benchmarked with other enterprises where appropriate, ensure clear and measurable objectives have been developed, regular monitoring of performance indicators occurs and recommendations made for improvement where targets are not being achieved.
  6. Financial - detailed cost/benefit analysis is prepared before a final decision is made to outsource, consider of existing fixed assets if any held by the enterprise (sell or lease), termination and transition costs, future contract management costs, costs are monitored against agreed contract rates.
  7. Proposals - requests for proposals have sufficient technical detail as required by those tendering with regard to expenses, scope, guidelines to be adhered to, etc, proposal review committee established and is sufficiently competent and independent, term of the contract considered, evaluation criteria established and use made of weighting calculations, documentation of the final decision

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