While realizing the benefits of IT outsourcing, creating and maintaining of right relationship with suppliers is instrumental. One believes that IT Outsourcing has matured greatly after the first big contracts would award. After first little generation of contracts it tends to concentrate on offloading costs, but it made little provision for innovation and change.
Based on new research, new third generation of IT Outsourcing is being proposed; whereby outsourcing is an ongoing and integrated part of a company’s business strategy. After the experience the new approach was derived from the people that engaged in Offshore Outsourcing agreements. Using surveys and focus groups, it was able to bring together the collective experience of the staff and develop key recommendations and structure for the next generation of IT Outsourcing.

There are certain benefits that should be realized from new model including reduction in time to market; improved operational performance; higher service levels; increased Information Technology staff retention and risk reduction. Third generation Offshore procedure is relevant to all retailers, whether they are currently engaged in IT Outsourcing or they are Offshoring for the first time.
For helping the company with better plans of investment in IT Outsourcing, it has developed a five point plan that summarizes new collaborative approach. With regards to approach, it transforms offshore deal from the traditional buyer and seller arrangement to one of co-operative and a shared vision that can be achieved.

IT Outsourcing

With focus on such parts of the business, the firm will yield copious benefits and the plans regarding constant improvement will be in process. By assuming this approach one can achieve a firm level of co-operation and engagement at all levels between the two different sides for the arrangement. Like that way, technology ceases to be a brake on progress and becomes a true enabler for successive progress. The five point plan for successful IT Outsourcing are as follows:

1. Ensuring of cultural alignment simultaneously with the process. With the likes of minded people working on common goals, the successful IT Outsourcing depends on a shared vision and approach to working together.
2. By setting of clear, measurable objectives it aligns the Information Technology objectives and the business goals with a common focus on meaningful corporate and operational objectives. At the same time keep avoid the pitfall of micro level objectives and do not expect consequences overnight.
3. For changing things constantly, it will not stay the same for long. Expect and accommodate corporate change, operational improvement, and technology enhancement in the process of IT Outsourcing.
4. By appropriate relationships at all levels of the customer and vendor company, including the key sponsors from both parties to keep the agreement on track.
Welcome and acknowledge the mutual dependency of an IT Outsourcing arrangement that created. The objectives should align and win for one party is also a win for the other one by acknowledgment. Therefore it is a win-win opportunity to both the parties.
5. Welcome and acknowledge the mutual dependency of an IT Outsourcing arrangement that created. The objectives should align and win for one party is also a win for the other one by acknowledgment. Therefore it is a win-win opportunity to both the parties.