IT outsourcing has been around for nearly three decades, and today IT leaders have learned to avoid many of the costly mistakes associated with outsourcing services. They strive to achieve service levels, in particular performance and usability, that meet end-user expectations, recognize the importance of service integration and process alignment, keep strategically important elements closer to the location of the company, and create more flexible contracts.
Yet CIOs continue to make traditional mistakes and even make new ones when bargaining with IT service providers. Care must be taken to avoid these oversights.
It is worth not forgetting that first of all, you need to find a verified it outsourcing provider, since this is 70% success, and then just try to avoid mistakes.
Change supplier instead of addressing root causes
Recognizing the importance of agility in the digital age, CIOs enter into shorter-term outsourcing contracts, often with multiple vendors, thereby providing flexibility and ability to get out of tough situations. But sometimes outsourcing users get too carried away with changing providers. By actively maneuvering between suppliers, such companies do not solve the main problems that persist regardless of the provider. Buyers of IT services should focus their efforts on getting a clearer understanding of what they need to do to make the agreement successful, rather than blaming the supplier for all the troubles.
Focus on solutions, not problems
One of the most common mistakes is focusing on technology. It’s easy to admit it, given the current digital hype. But buying a publicized innovation alone is unlikely to bring the desired results. Before concluding contracts for the supply of IT services, it is necessary to clarify as carefully as possible which business tasks are to be solved and what goals need to be achieved. Business leaders and users should be involved in the discussion. A multi-stakeholder meeting across the organization can help redefine and articulate objectives, and identify previously overlooked business areas that also require IT services.
The tendency to purchase standard solutions at the lowest cost is less common today. According to experts, the consequence of such a policy will be frequent requests for changes and the need to purchase expensive specialized resources, which will entail non-fulfillment of the economic feasibility study and loss of confidence in outsourcing.
Conclusion of a contract with a view to transformations
Companies are finding it increasingly difficult to compete in this dynamic digital age, and needless to say they are looking for help from IT service providers. But the problem is that it is not possible to create a transformation supply request.
A customer may complain that the service provider does not provide creativity and innovation, but the relationship between the parties is governed by a traditional request for supply, which sets strict rules and does not allow flexibility. In other words, it is usually the customer itself, rather than the service provider, who creates restrictions that prevent upgrades.
Clients seeking radical transformation must themselves shape the environment and culture that fosters that transformation. Host renovation meetings, engage business stakeholders, partner with a service provider, and show interest in their ideas. To motivate employees to upgrade, management must create the right environment. It may not be possible to implement all new ideas, but ignoring them is a sure way to suppress the creative impulses of employees of both the service provider and the client.
Outsourcing “by template”
Do not rely on an approach developed in another organization. You need to carefully assess the needs of your business, calculate the scale of the planned outsourcing agreement and think through its terms to ensure that your specific situation improves. It is necessary to determine the financing scheme, the risk structure of your particular enterprise and, taking into account its goals, objectives and culture, carry out preparation.
Overly strict contract
If you insist on strict restrictive conditions in the negotiation of an agreement, this can hit the customer himself, since the provider will put forward counter conditions so that his business model is not affected. As a result, certain provisions of the contract will directly affect its value, and in aggregate it can grow by 5-7%. When entering into a contract, the goal of negotiation should be to align the terms with your organization’s requirements, rather than overly restricting the supplier.
And if you try to avoid all these mistakes, then cooperation with an IT company will definitely take place at the highest level. Especially if you turn to the front end development company .