Having made the choice to outsource the IT functions, the following steps should be completed to make the correct decision:
- Determine what services to outsource:
- Identify critical success factors (i.e. cost, quality, time, etc.) and criteria.
- Rank success factors by business importance.
- Determine which IT outsourcing firms provide these services:
- Assess the organization based on:
- Financial stability (good track record, solid business model, sound financial results)
- Management and technical staff (how qualified they are)
- Contract flexibility (time and materials, fixed price, other agreements)
- Location (local, national, global)
- Customer perception (long-term relationships with customers)
- Determine selection criteria based on:
- Breadth of services (outsourcing, system integration, consulting)
- Business expertise (knowledge and expertise on business functions, including, finance, HR, manufacturing, customer service)
- Project management methodologies (tools used for analysis, implementation, quality assurance and reporting)
- Customer relationship management (contracts designed to fit the customer)
- Existing technology partners (established partnerships with key vendors)
- Seek request for information (RFI) and evaluate based on criteria.
- Further evaluate top 3-5 candidates.
- How is performance measured?
- Are contractual agreements flexible?
- What compensation is made for failing to meet objectives?
- Will they provide reliable references?
- Will our business cultures agree?
- What is the expertise level and credentials of the service staff?
- Is the candidate realistic in what they promise to deliver?
- Who owns the work product and intellectual property?
- What documentation is to be provided and who owns it?
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