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Ways to Maximize IT Outsourcing Deals

by: Sarah Joson

Friday, April 12, 2013 | Outsourcing News |

During the initial stages of an IT outsourcing services deal, providers and buyers become busy - focused on getting things started and often overlook their long-term goals. They become stuck with an average operation and many disappointments.

Stephanie Overby of CIO.com dissected the findings of Phil Fersht, CEO at Hfs Research, on the analysis of 282 outsourcing customers and providers, where only 32 percent of outsourcing customers said they have the ability to drive innovation internally and 23 percent were actually investing time and effort on implementing changes to improve operations.
In fact, only a handful of service providers were seen administering development programs such as training for employees and minor improvements to make operations sustainable, even successful.

Also, it was becoming more obvious that with the tighter competition amongst service providers, they are formulating packages that are aimed to attract new customers, and once these customers have bitten to the bait, they leave them hanging after the first few stages of transition and implementation. Clients become complacent as they feel they are getting exactly what they paid for, and they start to settle with that idea.

However, there are clients who want more out of their IT outsourcing operation, and when they approach their providers with the idea of innovation and improvement, providers are dumbfounded because they are not prepared for such requests. They no longer look for strategies that can drive value to the business, and often times, feel that their work is done once the operation is up and running.

Here are three ways clients can maximize and improve IT outsourcing service deals:

1) Donít make cost the sole selling point.
More often than not, buyers get what they pay for when selecting a service provider. They do not see that hiring a credible service provider that costs more than the usual can justify the additional price.

2) Review current internal operations. In order for executives to have clearer judgment of what they need to move forward, they should review what they currently have internally. They will be able to see what they actually lack and start from there, instead of having duplicate positions and tasks, which results to redundancy and ineffectiveness.
3) IT service clients should avoid a monotonous relationship. Some clients settle with a smooth-sailing operation.  If they want growth, they have to strive for new strategies and try something different. They should start by presenting new ideas to the provider and ask for suggestions so that the growth will be a two-way street.

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