Successful outsourcing can result in substantial cost savings, improved service levels, reduced risk, and can free scarce resources to concentrate on core business activities. Seven Consulting's independent Outsourcing Management services will deliver your outsourcing objectives cost-effectively, whilst reducing business and operational risk.

For every successful outsourcing relationship, there are more that fail. Many clients experience no cost savings and many more feel that their contracts are unenforceable. More than half of all outsource contracts are never renewed.

Yes, definitely! Outsourcing comes with many benefits, but the entire outsourcing process also requires good management to make it a success. Right from selecting a provider, to negotiating the deal, managing the relationship and dealing with the distributed process, outsourcing needs a good management strategy to be followed by both client and service provider.

What are the core functional areas that I need to focus on?

To enable the success of the outsourcing arrangement, a few core functional areas need constant monitoring by both the client and the service provider. Neglecting or overlooking any one area can often lead to the failure of the outsourcing arrangement.


Cost is often one the most important reasons cited for choosing outsourcing, as outsourcing enables both the client and the service provider to earn a considerable profit. It is therefore necessary that both parties analyze the scope and pricing of the outsourced project before they sign a contract.


Establishing the right communication channels is an absolute necessity for any outsourcing venture to succeed. Communication strategy should be given due importance right from the negotiation stage, with importance being placed on a foolproof communications system, consistent contact between client and service provider, regular feedback, clarity in instructions and the development of a reliable system for clarification of any points in question.


Performance management in outsourcing includes both project quality and adherence to the timeframe mentioned in the contract. The client must conduct regular checks to establish whether the quality of work conforms to previously established parameters. The client must also monitor adherence to deadlines and demand accountability reports in case of non-compliance.


A good relationship between the client and the outsourcing provider is essential for the success of the project. Relationships can be effectively managed with regular communication, continual transparency, and by displaying the right amount of flexibility when called for.


A crisis can strike either party of the outsourcing venture, and both sides must be suitably prepared for continuity of business. By choosing a well-established outsourcing provider, however, crisis management can be substantially reduced.


Continuous knowledge transfer, with complete transparency in all areas that concern the project, will facilitate better production, improved timelines and increase the overall quality of the outsourced project. For successful knowledge transfer management, close monitoring is needed on a regular basis.