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Archive for February, 2010

Crippling Outsourcing Mistakes

Saturday, February 27th, 2010

Recently I was reading an interesting article called Outsourcing: 10 Crippling Mistakes IT Departments Make and found myself scratching my head. At first, I was unsure why – all 10 things they point out are definitely key issues that can seriously harm or cripple your outsourcing plans.  All of their mistakes have a very common theme, that’s see all too often:  Companies don’t treat outsourcing like getting married.

When outsourcing, you’re building a long-term relationship with a company that will be looking after computer systems (or some subset of them), protecting your data, or helping your users.  When rereading the article with the mindset of getting married (or creating a partnership) instead of buying a commodity from a vendor, most people say to themselves, “Of course you wouldn’t do ‘Penny Wise, Pound Foolish’.”

For small to mid-sized businesses thinking about outsourcing, the requirements and “crippling mistakes” are quite different.  Most SMBs don’t have strong IT metrics (there’s some basics that everyone should have) or focus heavily on incentive-based contracts. Instead, there’s a need to focus on the basics.   (more…)