Outsource Systems Management to Improve Capabilities and Reduce Costs
Outsourcing is like a marriage. Treat it like a partnership, not a competition.
- Some enterprises end up dissatisfied with outsourcing due to misunderstanding of requirements.
- Outsourcing often leads to unanticipated costs.
- Vendor dependency will prevent switching at a later date.
- Changing vendors due to unmet expectations can be very costly.
- Organizations are frequently not adequately prepared to hand over services.
Our Advice
Critical Insight
- Outsourcing is not a typical vendor/client relationship. It is a partnership and must be treated like a collaboration rather than a simple exchange of money and services.
- Most organizations have not yet reached the maturity level required to outsource services effectively and need to take more time documenting their environment and their needs.
- Doing what you do best and outsourcing the rest isn’t always the best advice. Instead, outsource those things that you do not do well as well as those things that do not drive revenue. Then reallocate the recovered resources to more strategic initiatives.
Impact and Result
- Perform the necessary pre-work to set your outsourcing initiative up for success.
- Prepare for key objections by having a strong stakeholder management strategy.
- Understand how to engage with your vendor to ensure productive collaboration rather than conflict.
Member Testimonials
After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.
Client
Experience
Impact
$ Saved
Days Saved
Lake Simcoe Region Conservation Authority
Guided Implementation
8/10
$7,000
2
very skilled and experienced analyst brings good advice and support to our process. provides a good framework with which to plan and hopefully suc... Read More
Lake Simcoe Region Conservation Authority
Guided Implementation
8/10
$1,800
2
Darin got us up and moving forward quickly on our out-sourcing project.
Workshop: Outsource Systems Management to Improve Capabilities and Reduce Costs
Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.
Module 1: Assess Whether Outsourcing Will Help You Achieve Your Systems Management Goals
The Purpose
- Identify goals for systems management.
- Determine rationale for outsourcing.
- Assess criticality of core systems.
- Assess current capabilities.
- Assess fit for outsourcing.
Key Benefits Achieved
- Understand the benefits and challenges of outsourcing.
- Gain recommendations around how outsourcing may fit into the current approach to systems management.
Activities
Outputs
Discuss systems management goals
Discuss benefits and risks of outsourcing
Perform a criticality assessment
- Completed criticality assessment
Perform a capabilities assessment
- Completed capability assessment
Interpret the results of the decision matrix
- Reviewed decision matrix
Module 2: Build a Project Charter to Communicate the Value of Outsourcing
The Purpose
- Identify organizational and stakeholder needs.
- Determine desired project outcomes.
- Assess the impact of outsourcing.
- Identify risks and constraints.
Key Benefits Achieved
- Understanding of how to approach stakeholders strategically to secure buy-in.
- Identify and mitigate risks and constraints.
- Develop meaningful project goals.
Activities
Outputs
Establish baseline KPIs
- Project scorecard
Perform a stakeholder analysis
- Completed stakeholder analysis
Determine desired project outcomes
- Validated project goals
Assess the impact of outsourcing on people, processes, and technology
- Finished impact assessment
Identify risks and constraints that will affect success
- Completed project charter
Module 3: Find and Select a Best-Fit MSP with an Optimized RFP
The Purpose
- Determine and document what needs to be included in an effective RFP.
Key Benefits Achieved
- Understand what to look for in an RFP.
- Develop sufficient information to prepare the vendor to effectively determine costs and find a best-fit solution.
Activities
Outputs
Document the current environment
- Present state diagram
Collect and review service obligations
- Service Levels Summary
Clarify vendor/client responsibilities
- Vendor/Client RACI Chart
Understand how to use the scoring tool
- RFP Scoring tool
Module 4: Learn the Best Approach for Evaluating MSP Contracts
The Purpose
- Build a plan to successfully engage the vendor.
- Understand best practices in reviewing MSP contracts.
Key Benefits Achieved
- A vendor engagement plan to ensure ongoing communication with the service provider.
- Understand how to avoid common contract pitfalls.
Activities
Outputs
Discuss the importance of a full-time vendor management role
Create a vendor engagement plan
- Vendor engagement plan
Devise an exit strategy
- Vendor exit strategy
Discuss common contract pitfalls
- Contract checklist
Module 5: Plan the Transition to a Managed Service Provider
The Purpose
- Devise a plan to effectively transition systems management to a third-party provider.
Key Benefits Achieved
- A documented plan of action to hand over services to an MSP.
Activities
Outputs
Collect, evaluate, and revise current SOPs
- Modified, visual SOPs
Determine project milestones
- Project milestones
Build the outsourcing roadmap
- Project roadmap
About Info-Tech
Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.
We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
What Is a Blueprint?
A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.
Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.
Need Extra Help?
Speak With An Analyst
Get the help you need in this 1-phase advisory process. You'll receive 5 touchpoints with our researchers, all included in your membership.
- Call 1: Interpret the results of the decision-making tool with an Info-Tech analyst
Discuss the results of your criticality and capability assessment and determine the greatest opportunity for your organization to outsource. Review how criticality and internal capabilities will affect your vendor management strategy.
- Call 2: Have an Info-Tech analyst review your project charter to identify gaps and opportunities
A well-developed project charter can make all the difference between a smooth take-off and a failure to launch. Info-Tech’s analysts are ready to help by watching for common mistakes and oversights.
- Call 3: Review your RFP with an Info-Tech analyst to ensure complete coverage
Make sure that you’re asking for the right things. An Info-Tech analyst can review your draft RFP and make sure your solution will be designed to meet your needs.
- Call 4: Review your contract with an Info-Tech analyst and ensure you’ve covered all the bases
Vendor lock-in and hidden costs can destroy the value of your outsourcing project. Let an Info-Tech analyst guide you through the contract evaluation process and ensure that you’ve avoided all of the potential traps.
- Call 5: Verify your road map with an Info-Tech analyst to identify potential challenges and pitfalls
Make sure that your road map is complete and comprehensive. Identify any areas of risk and ensure that you have a strategy to implement the transition as smoothly as possible.
Outsource Systems Management to Improve Capabilities and Reduce Costs
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