Getting it Right – IT Outsourcing
You have made the decision to outsource your IT services, it’s an immense task and your business is underpinned by IT, so it is vital that you get it right.
As well as finding the ideal supplier, that offers the correct solution, there are many things that you need to do to ensure your journey doesn’t end in disaster.
Along with the aim to cut cost, a big reason for choosing to outsource your IT was to enable you to focus on your core business and have an expert deliver the commodity IT services.
That being said, the last thing that you want is the hassle of integration glitches, transition delays, testing failures and a variety of other downstream nightmares. Equally, you do not want to be put in a position that means you have to explain to the board why the scope keeps changing or why the project has gone way over budget and time-scales.
Many organisations who don’t manage a successful sourcing arrangement use termination as a method to re-mediate issues with their providers.
Early termination leads to a range of additional costs, including potential service disruption, new procurement process costs, and termination penalty fees. Not forgetting the time required to rebuild a new supplier relationship.
Wouldn’t it make more sense to get it right from the start?
- How can you ensure that the burden of risk is on the supplier and not on you?
- How do you ensure that the selection you have made is a good one and will deliver Value for Money over the lifetime of the contract?
- How do you ensure that the contract contains all of the appropriate schedules, incentives and penalties?
- How do you ensure that a relationship with the supplier continues in the same positive vein as it starts?
ImprovIT have put together 7 rules of Outsourcing which aims to ensure that you have the tools you need to A) negotiate the best price and B) ensure supplier contracts are framed in a way that favours you, the client – safeguarding you from future unforeseen risks.
To read the 7 rules, click here