Outsourcing Action Plan

>> Step 1: Determine if outsourcing makes sense for your company. During the outsourcing discovery phase, benchmark your current activities to determine how they compare with industry norms. It may be more cost effective to offshore to yourself--build up offshore IT resources in another region.

>> Step 2: Identify a partner. When you begin the process of outsourcing part of your operations or a specific project, be candid with your teams and bring them into the discussion. You should also consider bringing in a third-party sourcing specialist to help you through the selection and negotiation process.

>> Step 3: Negotiate a contract. Keep in mind three key aspects of contract negotiation: Plan for the end at the beginning; your outsourcing partner needs to make money, too; and negotiate based on cost, but make your final decision based on quality and people. It almost goes without saying that this is also the time to create iron-clad service-level agreements that all parties can live with.

>> Step 4: Keep the relationship healthy. To keep everyone happy (and honest) with the outsourced project or services, consider bringing in an independent company to perform quality assessments. Also, don't forget that even if you've outsourced it, you still own it. As CIO, you need to continue to take full responsibility for the governance process, prioritizing activities, and overall direction.

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