In line with my theme this month of Outsourcing Pension and Benefits Administration, we will set some basic steps as to how to get started and what to consider:

1.      Set realistic goals as to what you want to accomplish by outsourcing. If you don´t set goals up front, you will have nothing to measure against and determine whether you have succeeded or failed. As part of this goal gathering, you need to try and identify and document all your complete requirements.

2.      Evaluate whether you will outsource on shore, near shore or off shore. Such evaluation needs to consider cost, quality, language, security, efficiency, scalability, travel costs, economics, politics and employee issues. Since pension and benefits administration probably needs to involve local expertise, this step can perhaps be overlooked.

3.      You need to identify Vendor candidates.

4.      You need to evaluate the identified candidates using a scorecard approach, making sure that all capabilities are part of your evaluation. Costs should also be part of this scorecard. And in any outsourcing, technology will play a major role.

5.      You need to do analysis of the scorecard capabilities in (4) above compared with your needs/requirements in (1) above. This comparison will involve assigning weights to the various capabilities and needs.

6.      You should choose maybe the top three vendors to do further interviewing, verification and negotiations with.

7.      Do a site visit and talk to customers.

8.      Choose your vendor, negotiate the best possible deal, and develop a specific project plan that will meet your business plans.

9.      Consider using an iterative approach to implementation. Instead of the all or nothing approach, consider implementing and building your project plan in manageable steps and growing to your final destination.

10. Implement per your project plan, monitor and measure results.

We welcome feedback and hope you will respond by using the appropriate button "Add Comment" on my blog page.

Again, I just want to remind you of our next Employers of Excellence National Conference 2006 this year at the beautiful Red Rock Casino Resort Spa in Las Vegas from October 24-27^th. This year there will be a separate Global Benefits Track - Rolling Dice Across Borders sponsored by IBIS (International Benefits Information Service) in addition to our normal benefits workshops. I look forward to seeing you all there!