Week 7 Case Study Contracts and Procurement

2077 words 9 pages
The purpose of this paper is to highlight an area in a financial organization that may be outsourced and prepare an executive summary document that focuses on the cost savings of the outsourcing/contracting process for the business process that I’ve decided to outsource. This analysis will justify my decision for the business process outsourced by the followings: * Establish the preliminary performance targets/level of service that will be required from the selected vendors * Establish the type of contract that you will use for each contract * Determine the evaluation criteria you will use to select the preferred vendor(s) * Identify the number of vendors that you will select to provide the services to be
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Contract Structure
Payroll Processes
The vendor for our payroll processes will have a fixed-price contract over two years with a SLA stipulation that requires them to maintain a 99.9 accuracy rate which limits them to less than 100 mistakes a month. This is significantly better than our accuracy rate has been recorded at over the past five years. I choose a two -year contract because it’s important to constantly measure the performance of our vendor to make sure they are doing the job they are supposed to at the service level agreed upon. We do not want to be bound to any contract with a service provider that is not meeting our demands and need to option to opt out and find another vendor if needed.

Call Center Operations
The vendor for our call center operations processes will have a fixed-price contract. I choose a fixed price contract because it


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