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Outsource Systems Management to Improve Capabilities and Reduce Costs

Outsourcing is like a marriage. Treat it like a partnership.

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Without a managed services provider strategy there could be:

  • An overall dissatisfaction with the outsourcing arrangement due to unmet needs and unanticipated costs.
  • A long lead time before achieving a steady state.
  • A misunderstanding of expectations between client and provider.
  • A major business disruption due to the transition.
  • A risk of resistance from staff.

Having a strategy for outsourcing systems management can provide:

  • Improved system management capabilities.
  • Reduced time spent managing systems.
  • Reduced overall costs spent on systems management.
  • Limited risk of buyer’s remorse when selecting a vendor.
  • Improved service delivery.
  • Improved system availability.

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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:
1.1 Discuss systems management goals
1.2 Discuss benefits and risks of outsourcing
1.3 Perform a criticality assessment
  • Completed criticality assessment
1.4 Perform a capabilities assessment
  • Completed capability assessment
1.5 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:
2.1 Establish baseline KPIs
  • Project scorecard
2.2 Perform a stakeholder analysis
  • Completed stakeholder analysis
2.3 Determine desired project outcomes
  • Validated project goals
2.4 Assess the impact of outsourcing on people, processes, and technology
  • Finished impact assessment
2.5 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:
3.1 Document the current environment
  • Present state diagram
3.2 Collect and review service obligations
  • Service Levels Summary
3.3 Clarify vendor/client responsibilities
  • Vendor/Client RACI Chart
3.4 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:
4.1 Discuss the importance of a full-time vendor management role
4.2 Create a vendor engagement plan
  • Vendor engagement plan
4.3 Devise an exit strategy
  • Vendor exit strategy
4.4 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:
5.1 Collect, evaluate, and revise current SOPs
  • Modified, visual SOPs
5.2 Determine project milestones
  • Project milestones
5.3 Build the outsourcing roadmap
  • Project roadmap
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