Pulling the Right Levers for Outsourcing
"Negotiating a contract to outsource services rarely focuses on the vendor personnel who perform the services. Instead, the contract negotiation typically focuses on the scope of the services, service levels and credits, cost requirements and risk allocation frameworks.
Organizations that outsource services primarily view vendor personnel problems -- such as unqualified hires, attrition, poor performance and lack of motivation -- as internal vendor issues. The rationale: The vendor is the expert in the outsourced function and is in the best position to staff the project with the appropriate personnel. As long as the vendor is contractually required to perform the services in accordance with agreed-upon service levels, why should the customer try to manage the vendor personnel on its project?"
