Five Indicators Your IT Outsourcing Initiative Is Likely To Fail
1. Some organizations don’t put enough time into checking references, talking to existing clients and clearly understanding the deliverables that are being promised. This makes it difficult to evaluate the feasibility of the outsourcer to deliver against their promises.Sometimes it makes sense to have the outsourcer handle certain tasks while an internal IT team handles other tasks3. A workforce optimization exercise can help determine where an outsourcer can provide the greatest impact.
. Get clarity about what you want outsourcers to do for your organization and how you want them to do it.Another major reason IT outsourcing initiatives fail is because of limited or nonexistent stakeholder involvement. In today’s complex business environment, IT impacts nearly every department. If departmental leaders have no voice in the outsourcing arrangement, this can lead to substantial problems down the road, even revoltStakeholders need time to collaborate with their teams to answer one fundamental question: What do we need IT to do for us? If they are not given a reasonable amount of time to answer that question, you’ll likely hear about it for many years to come.
Additionally, stakeholders and even end-users need early and ongoing communication to know what changes are coming and why they are being made in the first place. If they understand the reasoning and the benefits, they can become a champion for these initiatives.: “As I hurtled through space, one thought kept crossing my mind — every part of this rocket was supplied by the lowest bidder." Far too often, IT outsourcing suffers from the same dynamic.
Here is a fairly common scenario I’ve seen: An organization puts together an RFP and shops it around. IT outsourcers respond to the request, putting forward their most competitive bid so they can win the deal. The organization chooses the lowest bid, thinking that they can always increase the budget later if needed to make up for services they might have overlooked.
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