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ACCA Strategic Professional · Strategic Business Leader · Enabling success: organising

Tandem Bank moved its customer call handling to a supplier in another country to cut costs. Which of the following is the most important mechanism for Tandem to keep control of service quality and customer experience after outsourcing?

A detailed service level agreement with measurable standards, ongoing monitoring and penalties is the key control mechanism. It sets out what the supplier must deliver and lets Tandem hold it to account, whereas giving up data ownership, target setting or internal management would weaken oversight.

  1. AA detailed service level agreement with measurable performance standards, monitoring and penaltiesCorrect
  2. BTransferring all of its customer data ownership to the supplier
  3. CAllowing the supplier to set its own performance targets
  4. DEnding internal customer service management entirely

Explanation

Control of an outsourced activity is exercised through a well-specified contract and SLA with measurable standards, regular monitoring and remedies for failure. The other options reduce Tandem's oversight and increase risk.

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