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Lifecycle: Learn Trends and Develop Strategy > Strategize: Strategy and Planning, Improve IT Operations > Operate: Operate and Optimize
Last Revised: 2011-07-20
Your Challenge
Organizations that assign significant ongoing IT responsibilities to external suppliers for long periods must perfect their vendor management processes and expertise to ensure continued delivery quality.
They must coordinate planning activities with those of their vendors to ensure that no changes on either side diminish the value of the relationship.
When major projects are contracted to external parties, effective vendor management is essential. But it is not enough. Recognize the importance of organizational readiness when initiating projects. Ensure success by having an internal project manager actively manage both the vendor and the organization.
After finding a vendor, signing the deal, and beginning an application outsourcing project, don't assume that the internal IT team can drop all project responsibilities. A recent Info-Tech survey found that strong governance emerged as the most important predictor of application outsourcing success. Help ensure application outsourcing success by instituting strong governance practices.
Using a performance scorecard to track provider performance in application maintenance outsourcing (AMO) can help to ensure that the initial goals of the AMO initiative are being met. Manage AMO relationships effectively by learning the ins and outs of performance scorecards for AMO and by using Info-Tech's AMO performance scorecard template.