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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.

Strategy > Delivery Model

Setting out what the service will deliver and how

I am using "Service Delivery Model" for the collation of choices made on the strategy into a consistent picture. Now is the time to prepare to respond to questions from the business perspective: What is the proposal? How will it work? and what value will it bring? Also, you need describe what you will require from service providers.

The development of the Service Delivery Model is a high level design exercise, although do remember that the external service should be defined in terms of requirements.

Service Delivery Model Framework

Considerations

  • The Core Service - What are the requirements?
    • What activities and deliverables?
    • For whom are these carried out? Who is the direct customer and with whom will the service interact?
    • What geographic coverage?
    • What sort of delivery channels?
    • How does the service need to perform: response times, accuracy?
  • What will the parameters of the service be?
    • Service times (hours/time-zone, weekend, country holidays)
    • Language support
    • Degree of variation needed across business and geography
    • Transformation
    • Continuous improvement
  • Service Mechanics - How will the service work?
    • Initiating and triggering work / demand management
    • Maintaining and developing policy and standards governing the service
    • Escalation – dealing with non-standard requests
    • Issue management
    • How is the service provider rewarded? (resources available, activity, delivery)
    • Is the service invoiced centrally or by (for example) individual country?
  • Service platform - What will the provider need for the service?
    • On – off – multi-shore capability
    • Technology platform (for e.g. HR system)
    • Work management process
    • Issue management process
  • Other important concerns
    • Does the service provider bring process expertise
    • Ownership of IP
    • Commercial arrangements

Developing your Delivery Model

A Service Delivery Model is best developed by bringing together a few people who have an understanding of the business, the defined scope and how shared and outsourced services work. Work through the various service considerations. It is sometimes useful to identify a few key decision points and keep them open as options. Having drafted your service delivery model, use it to test your assumptions, both internally and against what the market can provide.