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The term “outsourcing” places fear in the heart of IT people yet every firm outsources to some extent. Whether that is bringing in a company to help implement some software through to using an IT cloud service for email archiving and management – they are all forms of outsourcing.
Firms that are heavily outsourced already can often find that they outgrow the outsourced partner or values shared years ago when the deal was put in place are no longer aligned or service is not as it used to be.
Lights-On has assisted many firms in examining the options for outsourcing and in helping lead re-tendering exercises. Managed correctly, re-tendering is a healthy process that may simply re-ignite the service provider into upping their game or, indeed, may result in the firm finding newer, more well-matched partners for the outsourcing. Whatever the result, the process for a firm is a healthy one.
Whilst the process is a healthy one, outsourcing is fraught with dangers if not managed properly or approached with clear goals and deliverables in mind and a very careful and thorough process is required as the resulting relationship will be governed by commercials and contract and not internal management pressure and performance reviews! It is critically important to explore all aspects of service and our process helps firms fully understand their objectives, implement appropriate measurement, clearly define the as-is and to-be services and then manage a formal tendering process against those criteria.
We use much of our common and well proven process for tendering, combined with specific knowledge of outsourcing and the positive and negative impacts it can have and indeed having done it “from both sides of the fence” to ensure that the process is well managed.