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When making the decision to end the outsourcing contract and/or agreement it is nearly always advantageous to leave some door open to a later re-start or even a continuation. The contract itself may have postdevelopment aspects such as ongoing maintenance, incremental enhancements, up-leveling of hardware and software, and training to name just a few. Once a good relationship has been established and tested through a real project, keep it active and productive whenever possible. There is, of course, the darker side of ending an outsourcing relationship not knowing when the party is over. When dealing with unrefrigerated fish or visiting in-laws, there comes a time when it s time to part ways. It is important to build all agreements with the appropriate clauses to ensure that if the relationship gets to the point where it cannot be salvaged, then you can reasonably extricate yourself from the contract. (You are, after all, the customer.) The earlier such relationships are terminated the less traumatic it will be for both parties. With good planning, evaluation, and execution by the outsourcee and the outsourcer both can realize a satisfactory and mutually acceptable outcome.
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outsourcing and the anna karenina principle
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Is outsourcing Nirvana achievable forming marital bliss between two entirely separate companies in one of the many forms of relationship discussed in this chapter Yes, and like anything worth having (or achieving) it does not come without a lot of careful, objective scrutiny and planning. Careful planning, evaluation, selection, contract creation and agreement, and shared goals are critical to the success. Leo Tolstoy captured the essence of successful and unsuccessful outsourcing relationships in his novel, Anna Karenina: Happy families are all alike; every unhappy family is unhappy in its own way. Think of all the many essentials that a man and a woman must harmonize to make a successful marriage after choosing to live together: how to spend money, how to spend free time, religious beliefs, mothers-in-law, how to reach compromise, where to live, selection of mutual friends, number of children, methods of discipline for the children, pets or no pets, practicing a faith, setting up a budget, sticking to a budget, where to take vacations, and closet space to name a few.
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chapter 7
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consider the outsource
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A. B. C. D. E. F. G. H. I. J.
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Planning
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Phase 1: Phase 2: Phase 3: Phase 4: Phase 5: Phase 6: Phase 7: Phase 8: Phase 9: Phase 10:
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Deciding To Outsource Deciding What to Outsource Deciding How to Outsource Deciding to Whom to Outsource Deciding What to Share & What to Transfer First Deliverables (Contracts & Product Output) Repeatable Deliverables On-Going Management Branching Out (multiples in parallel) Continue, Change, or Terminate
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The Phases of Outsourcing Relationship
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EXHIBIT
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Now think of the same set of harmonized requirements necessary for a successful outsourcing relationship. Here is Tolstoy s point: when a marriage or any other complex relationship succeeds, the participants find a way to make all the essential requirements work all successful relationships are alike in this way. When a complex relationship fails, it is because any one of a number of different combinations of the essential challenges cannot be met to the satisfaction of one or all participants all unsuccessful relationships differ in terms of the unique combination of one or more failures to harmonize. Exhibit 7.11 is a summary and reminder of the key planning phases that need to be harmonized to establish a successful outsourcing relationship. With globalization moving from assertion to reality, there has been no better time to engage an outsourcing relationship. Take the time to find the right match.
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appendixes
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7A. Sample Request for Information Letter Dear _____________: <Company Name> is adding to our development capabilities by engaging an offshore outsourcing partner. We expect this to be a long-term partnership.
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