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Governance: Before you blame your service provider, put your own house in order so all stakeholders can benefit.
Lack of good governance is the weakest link in most global outsourcing deals. Managing relationships to mutual benefit is notoriously difficult in all cases. And managing them from many time zones away just compounds the problems. Governance is strictly defined as authoritative direction or control, but in this context, we mean how global-service initiatives are run—the people, processes, systems, and controls.
With scale and rapid growth come numerous challenges, including service failures, privacy violations, data theft, and inadequate savings. While such issues are often attributed to lack of capabilities and inconsistent quality on the part of the service provider, I find that inadequate governance on the part of the client is the single biggest reason that global service initiatives fail.
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