Just Say "Know" To Outsourcing

The latest issue of CIO magazine has a great article on outsourcing that provides a warning for those about to step off the precipice. Before stepping off and committing your soul to an outsource partner, you should first ensure that it's the right thing to do -- because you may just be setting yourself up for what may seem like an eternity of pain.

First, know thy self. Do you know your operations? Do you know what makes your business of IT tick? Do you have metrics? Do you measure against established service levels? Do you know how the parts of your IT organization affect the whole? Once you know you, the next thing to do is develop an sourcing strategy that is tied with your organization's business strategy. This will tell you what you really need to keep close, and what is not so important and may be a candidate for outsourcing. Outsourcing isn't just about money -- it's as much about what in your operations is a strategic differentiator for your business organization -- regardless of the expense.

When Not to Outsource

1. Your company is going through rapid or dramatic change.
2. You already have a low-cost IT environment.
3. Your sole rationale is cost savings.
4. You don't have an overall sourcing strategy.
5. You don't have the internal competency or a plan to manage the outsourcer.
6. You're doing it because senior executives are forcing you to.
7. You don't understand internal IT costs and quality.
8. You're outsourcing because the competition is doing it.
9. You'd have to transfer a significant amount of knowledge that's core to the business.
10. You're not clear about the overall business strategy and how IT fits into it.