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- You must be absolutely clear as to why you are considering an IT outsourcing agreement. Make sure that terms are defined, objectives and SLAs are clear and that all parties know exactly what is expected.
- What type of relationship do you want with your outsourcing partner? Depending on your requirements, may determine the type of company that you work with.
- What are you trying to achieve?
- Costs savings?
- Increased service levels?
- Enhancing areas where perhaps your company does not have the right level of skills?
- Identify and assess any potential risks. How will the IT outsourcing organisation manage and deal with these? What contingency plans will be put in place, for example, will they manage the Disaster Recovery Plan.
- You need to make a balance in agreeing the scope and length of any agreement. Three years is fine, ten years can be too long. It must have long enough time to make a difference and short enough to remain flexible. The agreement should allow you flexibility to change certain areas of the agreement especially when it comes to an exit.
- Transition plan. You will need to work with the IT outsourcing company to fully work out how the services will be transferred and over what period of time. Remember that it takes time to outsource and at some time you may wish to bring those services back ‘in-house’. This can be complex and long winded.
- You must communicate internally, i.e. within your organisation, as soon as you start to consider any form of outsourcing. Outsourcing can be an emotive term and people will hear gossip, and this can impact performance as personnel may surmise that there will be job losses. However secret you try and keep it, people will find out. As long as you fully explain the business reasons for doing so, most people will understand.
- Compliance. If your organisation is effected by for example legislation or codes of conduct such as Sarbanes-Oxley, this must be considered and be potentially written in to any agreement. All companies have to keep records of some kind and these will fall potentially within the remit of the IT function.