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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.

Outsource Systems Management to Improve Capabilities and Reduce Costs Research & Tools

1. Assess whether outsourcing will help achieve the organization's goals

Decide whether or not to proceed with outsourcing systems management.

2. Build the business case for outsourcing systems management

Win over stakeholders and secure buy-in.

3. Identify a best-fit service provider with an optimized RFP

Identify vendors that will meet the organization’s needs.

4. Ensure collaborative engagement with win/win contract design

Build a contract that protects the organization's interests and meets its requirements while avoiding hidden costs

5. Plan the transition to a managed service provider

Have a streamlined plan to transfer services to a third party with minimal disruption.

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Alan
Tang

Info-Tech Research Group

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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.

Authors

Sandi Conrad

David Drysdale

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