What Are the Secrets to IT Outsourcing Success?

IBA Group
Mark Kobayashi-Hillary

A recent article in the TechTarget publication, Microscope, explores the secrets to creating a successful IT outsourcing relationship. Many managers have experience of outsourcing these days – it’s no longer the secret it once was, but are the secrets to success still the same as they used to be?

The Microscope feature focuses on these three attributes as the most important:
– Partnership; work towards a partnership as two companies working together, not behaving like a powerful client paying a service provider.
– Flexibility; reach an agreement and write your SLA, but don’t reach for the contract every time something unusual happens – be flexible enough to help each other.
– Ability to change; your business will change over time, so work towards a long relationship that might be very different to where you started.

These are three great pointers, like maxims for getting outsourcing right. The industry has moved on a long way from the old days of screwing down suppliers to very tough conditions and not allowing them to make a profit, but there is a key point not mentioned in the feature.

Location of supplier remains important. There are some great IT suppliers all over the world, but if you need to work closely with your supplier and you want the ability to meet with them regularly then it would be best to not have that part of the team a 12-hour flight away.

If you are trying to create a genuine sense of partnership, rather than just a client/supplier relationship then nearshoring still works far better than remote offshoring. People are people and people want to see the people they are doing business with – in person.

Leave a Reply

Your email address will not be published. Required fields are marked *