IT Sourcing Strategy. Outsourcing strategy should be part of an overall IT sourcing strategy that describes what will be done in-house, what should be done by external providers, and why. Outsourcing works best when agreements are tailored to create value for both the clients and the outsourcers.
Deal Design and Implementation. It is critical to approach outsourcing as one would approach any other large transformation project—with a strong focus on change management and rigorous program management. No less important is understanding the economics of all parties to optimize the value created and then apportioned through the deal. ISBC's field-tested approach, which deals with design and implementation, is backed by business and technology expertise.
Outsourcing Management. Managing large outsourcing arrangements is not always a core competency of IT organizations, especially in their early years. IT organizations typically need to adopt more sophisticated practices in contract management, vendor performance management, and overall vendor-relationship management. A review of a client's outsourcing-management situation provides an opportunity to re-optimize the deal and get a clearer understanding of the performance and value it drives. Optimization often requires review or change of the governance, the retained IT organization, the terms of the contract with vendors, as well as the scope and scale of outsourcing.
Strategy for IT Outsourcing Vendors. Vendors must have a distinctive and differentiated go-to-market proposition to succeed in the market. New revenue pools and high-margin businesses need to be explored as traditional businesses get more commoditized and margins erode.
