The Right Choice

Electing to outsource your IT systems is a fundamental business decision, with considerable benefits in cost saving and resource allocation. That said, if you choose to outsource, there are a number of other decisions to be made about choosing the right outsourced partner, which will be even more fundamental than your initial decision. Once a company’s decision to outsource has become known, there will be no shortage in supply of applicants all outlining their plans to transform your business. So, what should you do and who should you choose? How do you make sure that your chosen partner will deliver best practice to your company? My first piece of advice would be to get your own house in order first. If you can clearly outline your business objectives to contenders, then they should be able to establish the underlying IT requirements that will help deliver these objectives. A great outsourcing partner will assist with the definition of these requirements and then set about building the service to fit exactly those requirements. I have had companies come to me with fairly specific lists of IT requirements, and some outsourced partners will happily work with this brief. But a good outsourcing partner will challenge this list and ask the company to outline its business requirements before defining an IT solution. Being able to clarify which requirements are unique to your business and which are generic, will help determine the appropriate candidates for outsourcing. The ideal position is likely to be an outsourced partner with a clear on-site advocate for the business. Sometimes an outsourced partner will offer to step into this role, but it is likely to be more successfully carried out by the client itself, as long as there are clear communication lines and escalation paths documented and agreed upon prior to making the transition. Throughout the selection process, CIOs must remain focused on the long-term results of the project. It’s very easy to get lost in the deal itself and, in an attempt to save the company money, have the emphasis shift to locking down prices and terms and conditions, as opposed to truly assessing the longer-term business requirements, and whether a fundamental switch in business operations is required in order to achieve these. This is where some CIOs may need to step back and change their attitude to IT; they need to start viewing it as a creator of business value as opposed to a cost centre. This will likely encourage more leading-edge and long-term recommendations from potential IT providers, which you can then assess in terms of their ability to deliver what’s needed for your company’s strategy, now and in the future. If you put your IT outsourcer under too much cost pressure it is likely to cut corners, so be realistic with the business process and remember that ‘quality remains long after the price is forgotten’. A huge part of your decision is going to be how compatible the provider is with your team. Ultimately, to ensure best practice, you and your team are going to have to create a great working relationship. Don’t limit your selection process to technical skills and experience; even within the IT industry you will find IT shops have hugely differing company cultures, so finding one that fits with your company culture will be extremely beneficial. Often this comes down to communication skills and working style – your outsourced partner needs to fit with your company just as well as any other employee would. You’ll be relying on them to successfully deliver the proposal they set out during the selection process, so you need to be comfortable that you can establish the kind of relationship to ensure this happens. And finally, don’t confuse sales and delivery. Staying focused on getting good delivery is the ultimate point of any outsourcing agreement, but it’s frequently overlooked once the papers are signed. Delivery details can often get lost in the transition from the deal guys to the execution team, so ensure that your project specifications are as detailed and as precise as possible. Once execution begins, keep communication lines open and ensure your chosen partner understands who the key contacts are within your company. When you distribute IT functions outside your organisation, you need the process to be orderly and co-ordinated, with ongoing communication from both sides.