New capabilities, like cloud computing, software-as-a-service, mobile device web access, and data center virtualization and consolidation, are significantly changing both the possibilities and the complexities of outsourcing IT functions. Analysts predict radical change in the shape of IT “factory” functions such as end-user support and help-desk services. However, an Information Week survey notes that almost 30 percent of the companies surveyed fired an IT outsourcing partner during the past year. In addition, a TPI survey found that 59 percent of respondents’ end users reported support delivered was lower quality than internal support prior to outsourcing.
With failure rates so high, how can a buyer of outsourcing services structure its arrangement to drive successful outcomes? This paper discusses six key success factors in outsourcing. The paper draws from and expands on findings in research conducted by Outsourcing Center, The IT Outsourcing Guide, Gartner, and The Contract Scorecard.
From this paper, readers will gain understanding about how such factors as how to select the appropriate service provider, transition the work to the provider, and manage the relationship, all with a stronger foundation for success.