The chief focus for the Outsourcing Yearbook 2016 was to determine what trends, technologies and skillsets are going to shape outsourcing in the coming decade, and how organisations will need to adapt in order to thrive.
As part of the Yearbook, Eversheds ran a survey in conjunction with the NOA on outsourcing and specifically what elements of an outsourcing contract are being successfully used by the buy-side community to incentivise good supplier performance. The results of that survey are set out in our report co-authored by Simon Gamlin and Ed Tompkin; “Delivering contracts with teeth” – the future of outsourcing.
Key issues in the consumer sector
This is a key issue for those working in the consumer sector as anything from fulfilment and logistics to HR, IT, finance, marketing and customer services can be partly, or entirely, outsourced. In light of (i) the wide range of options available; (ii) the popularity and ease of implementing such an approach; and (iii) the cost and efficiency savings outsourcing such services can bring, consumer sector clients need to fully understand the significant impact supplier under-performance can have on financial performance and reputation.
In particular, as outsourced services within the consumer sector are often customer-facing, the need for service that is of sufficient quality must not be underestimated. It is of course the contract terms that are the foundation to what action is and is not permitted and consumer sector clients must be confident that those terms offer a real solution to supplier under-performance.
Discover the “push” and “pull” factors involved with contract set up and negotiation in our report “Delivering contracts with teeth” – the future of outsourcing, as well as the real-life examples of outsource relationships, where particular contractual provisions have been used to great effect, and equally those that have not had the value that organisations expected when the contract was signed.