IT Outsourcing’s 15% Problem: The Need for Outsourcing Governance | White Paper

found errorData collected by Blazent reveals significant errors in the typical controls used for IT outsourcing governance. The result is expensive manual processes and inaccuracies that lead to time-consuming reconciliation exercises, yield inaccurate data, and are very expensive. Without a trusted baseline, disputes are inevitable, and there is no solid foundation for their resolution.

This paper discusses the operational data that IT outsourcing projects rely on. Blazent collected information from 60 outsourcing engagements to use for this analysis of the state of IT outsourcing governance. The data provides objective industry benchmarks that measure the effectiveness of IT management practices in use within some of the largest IT outsourcing contracts.

The paper reveals a significant amount of IT outsourcing does not provide value to customers due to governance control metrics being out of alignment and discusses the misalignments in detail. It also discusses four impacts on outsourcing relationships due to shortcomings in governance of IT contracts.

Included in the paper is a case study of a major financial services company facing a negative situation with its client and how Blazent’s solution turned the situation into a positive one for the service provider and its client.

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