What is an essential first step that an organization must undertake with its outsourcing vendor when negotiating the contract?
A) Make sure that there is a termination clause.
B) Check references using the vendor's current clients.
C) Establish benchmarks for current service levels.
D) Project a budget for cost savings.

Question

Quizplus · Accepted Answer

Before negotiating the contract, it is essential to establish benchmarks for current service levels, which helps to determine the areas that need improvement and sets expectations for the vendor's performance. This information is crucial in drafting a contract that meets the organization's needs and goals. Choices A, B, and D are also important, but establishing benchmarks is the most critical step to ensure a successful outsourcing partnership.

What Is an Essential First Step That an Organization Must