004). These non-core services include check processing by banks, drug manufacturing by pharmaceutical companies, and a whole range of IT and business support.
Successful outsourcing depends upon meeting four guidelines that are the hallmarks of successful relationship management. These guidelines are represented in the following table.
Step 1: Create a shared vision reflected in the outsourcing
Step 2: Include performance measures to motivate the
Step 3: Establish/maintain clear communication channels.
Step 4: Develop a contingency plan and exit strategy.
Tarsh (2004) takes the position that the best outsourcing relationship is one in which both partners contribute and are equally invested in a shared vision. Performance measures which are integral to effective contract management in all outsourcing efforts should be specified in terms of outcomes rather than inputs. Additionally, with clear communication mechanisms in place, Tarsh (2004) asserts that it is possible to avoid problems that easily develop when key functions are performed by an outsourcer.
One of the challenging questions that any co
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