TAILIEUCHUNG - Outsourcing’s Two EvilsBy Ernie Zibert

Outsourcing’s Two Evils By Ernie Zibert Copyright 2012 Ernie Zibert Smashwords Edition Smashwords Edition, License Notes Thank you for downloading this free ebook. Although this is a free book, it remains the copyrighted property of the author, and may not be reproduced, copied and distributed for commercial or noncommercial purposes. If you enjoyed this book, please encourage your friends to download their own copy at , where they can also discover other works by this author. Thank you for your support. Discover other titles by Ernie Zibert at . Table of Contents Paying for Nothing Paying Twice for Something About the. | Outsourcing s Two Evils By Ernie Zibert Copyright 2012 Ernie Zibert Smashwords Edition Smashwords Edition License Notes Thank you for downloading this free ebook. Although this is a free book it remains the copyrighted property of the author and may not be reproduced copied and distributed for commercial or noncommercial purposes. If you enjoyed this book please encourage your friends to download their own copy at where they can also discover other works by this author. Thank you for your support. Discover other titles by Ernie Zibert at . Table of Contents Paying for Nothing Paying Twice for Something About the author Other books by this author Contact the author In this booklet I discuss outsourcing s two main evils. The two evils are Paying for Nothing Paying Twice for Something I provide examples of the traps that firms can find themselves exposed to in an outsourcing relationship. Paying for Nothing Nobody wants to pay for nothing . Yet firms enter into contracts with pricing models that reinforce this evil. For example many contracts have minimum volume requirements. Once the firm goes below the minimum volume then they might have to pay for a proportion of the cost even though they no longer require that service volume. High-risk areas where firms can pay for nothing are Strategic Services. Examples of strategic services are innovation and architectural services. These offers simply do not warrant pre-payment in any outsourcing relationship. If they are included in your deal then sit down with your provider and ask them to value it and remove that cost from your agreement. SLAs. Service Level Agreements SLAs represent another area where almost without exception the firm is paying for nothing. The business need might need uptime on servers but the firm is paying for . Agreements which automatically formulaically ratchet up SLAs as part of the yearly review have no value. If these are in your agreement get them removed .

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