Five Outsourcing Rules for CIOs

As the CIO of a company, you might have to deal with an expanding list of business objectives, which you have to meet by implementing a cost-effective strategy.  You have two options. You can concentrate on in-house development or outsource.  With cloud computing growing at a fast pace, it makes sense to go beyond the corporate boundary for IT services and ensure better value for your business. Here are five key rules to help you make the best from your outsourcing contract:

1. Figure out why you want to outsource and list down your objectives

This may sound oblivious, but having specific aims really matter in an outsourcing relationship. Before you outsource, make sure that you know what to expect from the outsourcing deal. Having clear and specific objectives also makes it easy for your outsourcing partner to ensure better success. To begin with, consider shorter outsourcing contracts with strong emphasis on your business objectives. Also ensure that the service provider offers you with flexibility in the outsourcing deal.

2. Engage the help of a legal adviser to help you decipher the outsourcing contract

Striking the right kind of deal with a service provider is something that most CIOs are concerned about. To start with, find a legal adviser who understands your interests and concerns. You can go with your internal legal team or hire the services of a legal enterprise to help you decide on which outsourcing partner to choose. Deciphering the finer points of an outsourcing contract can help you enjoy a great working relationship with the service provider right from the start.

3. Plan and prepare before you start outsourcing

There is a lot of work involved in planning a good outsourcing relationship and you must be prepared for it. Right from sending a request to understanding the proposal and then signing the contract, you must ensure that you are fully prepared to handle it. Make sure that you understand the motives of the service provider and ensure that your business will be getting better value from the outsourcing deal. Though low cost is a great benefit, also make sure that the service provider offers other benefits like good quality, data security and fast turnaround time.

4. Involve your internal team with the outsourcing project

Give your internal employees time and communicate with them on how the outsourcing deal will affect their way of working. Working with the key people in your team and creating internal communicators will show the benefits of outsourcing in the long run. By involving your team with the outsourcing project, they will be aware on how to work with the new changes within your company.

5. Make provisions to manage the outsourcing partner and the contract

Signing an outsourcing contract is not the end, but the beginning. If you want to see success out of the outsourcing venture, you must make sure that you proactively manage the outsourcer. Working closely with the outsourcer, will make sure that they produce the best possible value for your business. Even if your SLAs (service level agreements) are met by the provider, always aim to get more from the outsourcing contract. Sharing positive criticism with the service provider can ensure long-term success for your company.

Do you want to know more about how outsourcing works or find out what services can be outsourced to India? Just leave a comment in the box below and we will be happy to answer you or help you get started with outsourcing.

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