IT outsourcing is a major undertaking. You aren’t just zipping down to the corner newsstand to grab a candy bar and the Wall Street Journal. You’re making a long term investment in change – perhaps comprehensive change that will redirect the way your entire enterprise functions. Change that will determine how – and how well – you’re able to meet the future.
Naturally, you want to avoid failure with your new IT outsourcing partnership.
Know thyself.
The better you understand your immediate must-have needs, what you’d like to have and your own unique corporate culture, the better equipped you’ll be to make good decisions. Conducting a detailed IT self-assessment will point up weak spots or gaps you’ll want to fill with IT outsourcing and identify strengths you can play up with external assistance.
Do your homework.
Not all providers are equal, in any sense of the word. Look for one that understands your industry, not just theirs. Any supplier you’re seriously considering should have a strong track record with projects of similar size and scope to yours. They should be clearly able to respond quickly to changes -- you have to be adaptable to remain competitive, so your IT outsourcing partner must be able to match that agility. Get references and talk to them.
Smartly negotiate your contract.
Clear expectations ensure success with any relationship, especially something as complex as IT outsourcing. Be sure your contract covers service levels, duration and renewability as well as pricing. Define quality, not just quantity of services. Build in incentives – after all, your IT outsourcing partner is in business, too. And consider shared risk opportunities that could benefit both of you.
Well-negotiated and clearly written contracts help guard against potential hazards such as mission creep, budget overruns, transition snags, etc. Spell out the need for thorough testing before transition is considered “complete” by either party.
Make sure you understand what you’re likely to gain, so your expectations aren’t out of line with reality. But also ensure you understand what’s expected of you. Sure, you’ll retain final say regarding any major changes or unusual circumstances, but you can’t just abandon ship meantime and expect things to sail smoothly toward your destination
Besides, your IT outsourcing partner can become a valuable resource for your company, not just a discrete service provider. It would be a failure not to take advantage of their extensive training, specialized skills, experience and research capabilities to identify and implement ongoing improvements or uncover and seize new opportunities.
Outsource assistance with your IT outsourcing decisions.
Considering the complexity of your potential new IT arrangements, you don’t want to make mistakes that will lead to failure. You can try to wade through all the details yourself, but why? It will be time-consuming, and presumably your IT staff and others who may be involved in transition decision-making have responsibilities that relate more directly to core business activities.
Teaming up with a professional expert who’s intimately familiar with the IT outsourcing marketplace just makes more sense. You’ll get unbiased review of your self-assessment and knowledgeable assistance with sourcing and contract negotiations. Your consultant will help develop key performance indicators based on your specific IT and corporate goals, because you can’t know if you’re getting what you want or what you’re paying for without appropriate metrics.
Once you’ve done your due diligence and implemented your outsourcing decision, ongoing communication with your external team will keep things on track. You’ll be able to make tweaks that are cheaper and less unsettling than major course corrections. And that assures success, rather than failure.
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