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The initial decision to outsource and the final selection of a suitable IT services company form integral parts of an organization's sourcing life cycle. The decision to outsource all / parts of the organization's IT functions is one of the most difficult decisions that a CIO and his team has to make. The simple reason being this decision will bring about significant business risks in the form of transferring day-to-day responsibilities of running mission-critical systems to a 3rd party. In addition, there may be considerable operational impact on staff that comes in the form of adjustments in working styles.

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The objectives of outsourcing generally comprise of the following:Cost control / savings,Concentration on core activities,Access to new skills and technologies,Overcoming internal organizational inertia to effect change.Objectives have to be clearly identified by the CIO and he will also have to take on the responsibility to communicate these objectives to all respective stakeholders from the outset of the process. But like any partnerships, outsourcing can sometimes have the reverse effect of bringing about traumatic experiences, which can prove to be costly to the organization. So before you engage a 3rd party IT services firm, seriously consider all the impending factors as outsourcing is a long-term engagement and should not be taken lightly as a temporary relief of internal management failings for the organization.


 


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