03.09.2020

Our hints for avoiding pitfalls in IT outsourcing

When IT is not the core business of your company, it is worth considering whether to outsource parts or all of it. Here, we list a few things you need to take into account when outsourcing IT services and how to avoid eventual pitfalls.

As with outsourcing activities in general, IT outsourcing is usually done with cost savings in mind. It is a valid reason for outsourcing but it takes some foresight to reach a good outcome. If the tender is resolved on the basis of price only, the usual outcome is disappointment, and the service might not be quite what was expected.

Tender based on prices does obviously give quick savings – but also dissatisfaction with the outsourcing quality. It is better to concentrate more on the quality targets of the outsourcing than on price.

Well-functioning systems and availability of professional user support often give greater savings than what can be reached by a mere price-based tender.

A slightly higher price per hour probably gives you the services of a more competent person. That means that the work will proceed faster and be done right at the first go, so the total price might actually turn out to be lower in spite of the initial higher hourly rate.

Another pitfall with IT outsourcing is also connected to money. That would be contract ambiguity. If the contract has been written in a very ambiguous way it does not necessarily include even nearly all the things the customer has imagined it would. That causes additional costs, which hardly is a pleasant surprise for the customer.

Once you manage to jump your way over or beyond the price-setting pitfalls, and you have a detailed agreement on your IT outsourcing, there still is one more possibility to stumble. The customer may think they do not need to give a single thought to IT matters anymore: they have been outsourced!

If the customer wants the best possible outcome from their IT outsourcing, it is worth cooperating very closely with the service provider. Outsourcing does not do away with the responsibility for data management. The service provider cannot take important IT decisions for their customer. A successful IT outsourcing demands that the customer also wants to improve the processes. Tight communication with the service provider is a prerequisite for a successful IT outsourcing and continuous development of the activities.

Is there something that left you still wondering? Please look at the IT services offered by us.