Outsourcing

Thinking about outsourcing some or all of your IT? Already outsourcing and need to make changes or re-tender?

10 to 15 years ago it was mainly the business that outsourced IT. Today it is far more likely that the retained IT group is doing the outsourcing, assisted by procurement. The maturity of sourcing strategy and processes varies wildly within the outsourcing industry, so a one-size-fits-all approach doesn’t work. Current outsourcing methodologies are often too heavy or rigid, resulting in asking the wrong questions, getting the wrong answers, and entering into multi-year strained relationships, non-delivery of transformation benefits, supplier lock-in and frustration.

If you are already running an outsourcing process, or thinking about starting one up, I can help with the complete life-cycle:

  • Requirements definition – what do you hope to achieve by outsourcing, whether it’s a first or second generation programme? What are your success criteria, in other words: what does good look like and how will you know when you get there? My perspective is that most clients target cost savings as a key objective, but this is rarely achieved. A more tangible and beneficial driver could be to use the outsourcing as an opportunity to stir things up, to break down cultural inertia and make large, politically difficult change happen. 
  • RFP generation – structure and write the formal document.
  • RFP process management – including tendering, supplier communications, steering and governance, decision making and stakeholder management, works council and union communications.
  • Contracting and due diligence – supplier investigation and due diligence, supplier negotiations,  statements of work, services agreements, service level agreements.
  • Transition and Transformation planning and management – design, plan and execute the change programme to achieve the hoped-for benefits of the outsourcing.
  • Performance Monitoring and Management – after the contract is awarded and you’ve switched to the new supplier, I can set up a fully managed service to monitor the performance of suppliers against obligations, create consolidated service level and billing reports, and run supplier meetings to review progress, set and measure improvement objectives.