From the course: Outsourcing Critical Success Factors
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Required level of service
From the course: Outsourcing Critical Success Factors
Required level of service
- Imagine inviting a couple and their family to your house for dinner, but not asking how many people ae in the family. You might be surprised if they show up with their seven children, four of which are teenagers. The volume of food that could be consumed in that situation is well, almost unimaginable. Outsourcers and their clients need to avoid surprises like this. A critical success factor for outsourced accounts involves not only defining the nature of services to be delivered, but the volume of services as well. In contracts that employ pay by the hour or pay by the service models, there may not be specific limits on the volume of services requested. In larger contracts where a higher volume of service is delivered or the volume can vary significantly, more specific terms are appropriate. Enter the concepts of standard volumes, Additional Resource Charges or ARCs, and Reduced Resource Charges or RRCs.…
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