Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management

    IT Outsourcing Often Falls Short of Its Goals: 10 Common Pitfalls

    By
    Chris Preimesberger
    -
    July 17, 2013
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      PrevNext

      1IT Outsourcing Often Falls Short of Its Goals: 10 Common Pitfalls

      1 - IT Outsourcing Often Falls Short of Its Goals: 10 Common Pitfalls

      by Chris Preimesberger

      2Lack of a Strategic Plan

      2 - Lack of a Strategic Plan

      Enterprises should have a strategic plan in place before they begin outsourcing. While many will outsource their entire IT function, a more targeted “out-tasking” approach tends to provide more flexibility and control. With out-tasking, an organization can avoid the costly burden of outsourcing its entire IT function by transferring only specific IT processes to its outsourcing provider.

      3Outsourcing Core Competencies

      3 - Outsourcing Core Competencies

      When assessing which IT functions to outsource, critical and proprietary systems—that is, those that differentiate an organization’s products or services from its competitors—should be kept in house to enable proper oversight. Generic, non-mission-critical functions, on the other hand, are best suited for outsourcing by an external provider.

      4Unrealistic Expectations

      4 - Unrealistic Expectations

      Enterprises should set high expectations for their outsourcing providers. However, if an organization realizes that those goals were unrealistic or unattainable after the project is complete, disappointment is inevitable. Realistic expectations should instead be set before the project begins. Organizations can set realistic goals by running a pilot prior to signing any contracts and conducting regular performance reviews throughout the outsourcing relationship to assess consistency and overall results.

      5Inadequate Analysis of the Provider’s Operating Model

      5 - Inadequate Analysis of the Provider's Operating Model

      While cost should certainly be considered, there are a number of other factors that organizations should also look at before signing on with an outsourcing provider. Evaluating a provider’s IT maturity and capabilities, for example, is also important, as well as leadership, IT architecture design, vision, contract management and delivery of services.

      6Poor Contract Planning

      6 - Poor Contract Planning

      Drafting the contract is a critical stage in the deal that requires significant attention to detail. Loose terms leave gray areas that are open to interpretation by both parties, which could result in a series of unexpected changes down the line, bringing in additional costs or mismatched expectations.

      7Inflexibility

      7 - Inflexibility

      IT technologies and services change rapidly over short periods of time, so it’s important to set contractual guidelines for managing unexpected contingencies. For the best results, all aspects of the deal—including the goals, processes and reporting metrics—should be adaptable to the changing IT landscape.

      8Poor Transition Management

      8 - Poor Transition Management

      The transition of processes and technology from the organization to its outsourcing provider is a complex stage that sets the tone for the rest of the deal. By ensuring various steps like go-live dates, delivery deadlines and metrics are communicated and agreed upon by both parties, a sense of trust is established that is more likely to carry through the remainder of the contract.

      9Inconsistent or Insufficient Communication With Providers

      9 - Inconsistent or Insufficient Communication With Providers

      Even after the transition period is complete, organizations should maintain a consistent level of communication with their outsourcing provider, especially when the outsourcing provider might follow different work standards or ethics.

      10Inconsistent or Insufficient Communication With Internal Staff

      10 - Inconsistent or Insufficient Communication With Internal Staff

      Communication among staff is also important. Prepare to educate staff about how the outsourcing deal benefits the company and aligns with internal goals, and retrain existing staff as necessary if they are reallocated to new roles. This will also help curb any fears about outsourced workers replacing existing employees.

      11Cultural Incompatibility

      11 - Cultural Incompatibility

      Cultural differences might emerge across a number of areas—work culture, ethics and problem solving, for example. Treat the outsourcing team as adjunct staff to improve the working relationship and close cultural gaps. Effective communication across language barriers can be challenging, but there are several steps that can be taken to overcome them. For example, educate employees and clarify terms and ideas that might be lost in translation, or develop communication channels that prevent mixed messages, such as written instructions or image-based WebEx presentations.

      PrevNext

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×