as 15% to 20%, adding that there could
also be a loss of intellectual property
since there is no continuity in
knowledge, which ultimately affects the
decision-making process. erefore,
should the contract be prematurely
terminated, the entire operations cycle
will be disrupted, resulting in revenue
loss. He also notes that an inadequately
de ned scope and responsibility matrix
leads to con ict and unhealthy relations
between the parties, affecting the
targeted outcome of the outsourcing
business case.
probability of mitigating these risks
based on actual requirements.
He puts forward that selecting the right
business partner, in terms of the type
and form of contract, will result in
de ning balanced commercial terms
involving the incentive of shared bene ts
between owner and contractor and
exibility with regard to changing the
contract scope. In terms of output
control, Dedasaniya says de ning the
mining company's objectives and goals
in terms of outsourcing plays an
important role in ensuring that the
contractor will be able to perform
accordingly. He notes that by de ning
the dependencies that other operations
could have on a contractor's
performance and how to reduce this
reliance when output is at risk, will also
assist in preparing recovery plans. “Once
you enter into a contract, it's very
difficult to exit without disturbing
operations. It is, therefore, of great
importance to chose the right business
partner who shares a company's values
and envisions the same end goal,” he
declares.
Outsource Models
Dedasaniya asserts that there are various
models available when selecting
contractors that will best meet the
requirements of a project and those of a
company. ese