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7 Steps to a Foolproof IT Outsourcing Strategy

by: Sarah Joson

Wednesday, May 6, 2015 |

Create a Solid IT Outsourcing Strategy

In outsourcing, business owners and executives tend to focus more on short-term results which often include attaining a certain goal and reducing costs. However, some factors are often overlooked - causing a domino effect in most outsourcing strategies. A post at CIO.com discusses seven steps executives can follow to attain a successful IT outsourcing operation:

1. Create a solid plan.
In the world of commerce, there are three types of strategies: corporate, business unit, and implementation. Each strategy serves a specific purpose, designed for a specific group.  If outsourcing is integrated properly in each category, everything is bound to make more sense.

2. Create and target mini goals and checkpoints.
In video games where players are assigned a mission, checkpoints are plotted throughout the entire gameplay. These serve as a campsite where they can recuperate and save their progress. It is also a where players respawn when their characters die, and a mini goal that they have to reach to successfully finish the game. This is similar to business strategies, well, save for the respawning part.

3. Take mistakes to heart.
Outsourcing can be a complex subject at the beginning and mistakes are inevitable. Instead of pointing fingers and fixating on what happened, why not turn it to a positive experience by taking note of the key problems and making sure that these won’t happen again in the future. It also unifies the team and makes relationships stronger as you fall and stand together.

4. Be more flexible.
As the operation continues, there will come a time when the original plan must be revised so it will remain effective. For instance, is the timeline still applicable even if other segments are delayed? Or will the original budget be enough even though suppliers changed their pricing schemes? These types of issues will definitely come up and leaders need to prepare for the possible changes and modifications brought about by external factors.

5. Determine if the objective will contribute to the organization’s growth.
Of course, before an outsourcing strategy is carried out, you would have to make sure that the objective is aligned with the company’s vision/values. Ask yourself: does my outsourcing strategy properly represent the organization? Will it add value rather than increase risks and challenges? These are the questions you have to figure out first before rolling out your plans.

6. Look beyond the border.
As the global economy continues to evolve and fluctuate, organizations must see the bigger picture and take note of factors that could affect their internal strategies - including their plans to outsource. Some factors are currency risks, inflation levels in outsourcing destinations, political stability, among others. External factors can also impact the reputation of the company, which is why these things should be monitored regularly.

7. Brace for change.
Outsourcing is bound to disrupt the current day-to-day operations of an organization, and having a solid implementation strategy will help absorb the impact of these changes. Some may consider these changes as disconcerting and scrap the entire outsourcing plan, but if you focus on the long-term goal and consider designing an implementation strategy, everything will fall into place in due time.

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