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Outsourcing Fundamentals

Independent guide to Outsourcing: BPO strategy, Service Provider selection, contracting and implementation projects. Assessing and improving your current service.

Contracting > Introduction

Contracting a BPO Service Provider

The Contracting stage covers the process from having decided on a strategy to make use of BPO to finalising your requirements and solution, and signing an agreement with your selected service provider to put in place the outsourced service.

The objective of the Contract stage is to match the requirements of the business with the services available in the market and gain agreement of all parties on the solution.


The material in the Contract stage assumes that the main components of a strategy have been decided.

  • You intend to make use of BPO to support your business
  • An area of the business has been selected, at least in outline, for which a BPO service proposal will be considered.

How this section is structured

The overall process is described over three pages:

  • Requirements: covers the collation of information and development of a design hypothesis.
  • Provider Engagement: The process of getting the best from the outsourcing market place.
  • Contract and Negotiate: describes what is involved in developing the contract and negotiating.
people agreeing contract

The next three pages provide specific topic coverage:

  • Key Documents: The process is one of getting to a tight specification of requirements and contractual agreement for the services. Growing and developing a set of documentation is an important aspect to manage and this page covers the significance and relationships of the key documents and data sets.
  • Commercials: Covers the main commercial frameworks that will become part of the agreement and subsequent operations.
  • Service Terms: Describes many of the other characteristics of a service that need to be catered for in the contract.

And finally

  • plan: This page includes a plan from a real project and describes the roles required for this phase.