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Contents 
Outsourcing risk
High-risk areas
Mitigate don't hesitate
Written in ink?
IDC: Loss of control the biggest risk
Gartner's Oz VP sourcing |
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James Longwood, vice president, sourcing, Gartner Asia Pacific outlines a few below:
| Typical Risk / CSF | Approach to Mitigation |
| Project doesn't meet business goals. | Develop a sound business case, including risk and cost benefit assessment. Include costs for go to market, transition and on-going sourcing management. |
| Wrong services are outsourced or wrong ESP is selected. | Develop a sourcing strategy analysing internal versus market capability. Properly assess sourcing models available. |
| Services are not clearly defined resulting in poor service deliveries. | Develop a comprehensive statement of service / project requirements, into a formal Statement of Work with appropriate service levels. |
| Internal staff may be un-co-operative in efforts to outsource. | Establish an organisational change management strategy early in the piece with a very good and open communication approach. |
| Deal becomes quite inflexible over time. | Ensure appropriate mechanisms to change base line of services and to introduce new innovative technologies or services. |
| Early cost savings followed by unexpected cost blow outs. | Ensure appropriate mechanisms for changes to base line services, that pricing is visible and fair for changes in scope of services. |
| ESPs buy the business and then can't deliver and ask for an increase in fees. | Enterprises must learn to evaluate costs last and not first when evaluating and selecting ESPs. Evaluate their service delivery capability and track record and service delivery / SLA management capability first and eliminate ESPs who can't meet your requirements before comparing prices. Understand that ESPs must make a profit in order to continue to deliver a high quality of service and invest in process improvement programs. |
This article was first published in Technology & Business magazine.
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