IT Outsourcing as a Sanction

Filed in archive Best Practice on October 5, 2007

According to the research study done by Forrester, some companies are outsourcing their IT functions as a "sanction" or Punishment for in-house IT outsourcing that lacks quality.

Though that is the case, this reason only placed third because Cost savings and better IT delivery was cited as the first and second reason respectively. In line with this, the research study suggested three steps to eliminate negative results in IT Outsourcing.

These three steps identified are:
1. Firms should ensure its outsourcing strategy matches the rest of its IT group structural issues.
2. Staff availability for new projects should influence the outsourcing model.
3. Companies must ensure that IT context determine the implementation of the selected outsourcing model.s

Do you think this would be effective for your company?