Friday, February 10, 2006

Ideal Candidate for IT Outsourcing

The instrumental benefits of IT Outsourcing is realized by creating and maintaining the right relationship with vendors. There are some first and second generation of contracts which tend to concentrate on offloading costs, but made little provision for innovation and little change. Since the first big contracts were awarded a decade ago, some believes that IT Outsourcing has matured greatly.

The five tips plan to successful IT Outsourcing:
Expect change: Only one thing in this world is permanent that is change, things will not stay the same for long. Expect and accommodate business change, operational improvement, and technology enhancement. Ensure cultural alignment for successful IT Outsourcing depending on a shared vision and valuable approach for working together, with like-minded people working on common goals.

IT Outsourcing

Win - Win situation: Acknowledge and welcome the mutual dependency which creates a Software Outsourcing arrangement. Ensure that the objectives are aligned and that a win for one party is also a win for another. Set clear, measurable objectives to avoid the pitfall of micro level objectives and do not expect results overnight, align the IT Outsourcing objectives and the business goals with a common focus on meaningful organizational and operational objectives. Keep sponsors engaged by having appropriate relationships at all levels of the customer and vendor organization, including the key sponsors from both parties to keep the agreement on track.

Based on new research, a new, third generation of IT Outsourcing is being proposed; whereby Offshore Outsourcing is an ongoing and integrated part of a company’s business strategy. The new approach was derived from the experience of people engaged in offshore agreements. Using surveys and focus groups, it was able to bring together the collective experience of their staff and develop key recommendations and structure for the next generation of IT Outsourcing.