To Outsource or Not to Outsource, That is NOT the question!

The question is not whether to outsource but more of what and how to outsource. Commercial Off The Shelf (COTS) software and other external IT expertise has dramatically matured over the last twenty-five years and will only accelerate its maturation process. No single enterprise no matter how large can hope to keep pace.

Thus, the first question is WHAT should be kept in-house. Any software that is a critical differentiator should be kept in house. Critical differentiators can include numerous different types of activities. This includes:

  • Business Enhancement
  • Technology and Service Advancement
  • Partner and Vendor Integration

With Business Enhancement, businesses look into their processes, sub processes, and cross processes for differentiators.

With Technology and Service Advancement, enterprises look to differentiate the products and services they provide to the marketplace, as well as technological innovations within their operating infrastructure and manufacturing environments.

With Partner and Vendor Integration corporations look to differentiate via their relationships and interactions in mergers, acquisitions, supply chains, and distribution chains.

In all of these categories differentiators in quality, cost, speed, and feature are all of merit.

The second question is HOW to outsource. This includes maturing numerous outsourcing or as we like to call it ‘Vendor Integration’ processes. These processes include:

  • Elicitation
  • Contracts
  • Negotiation
  • Vendor Performance

Along with additional processes to insure that the above processes continually mature, are aligned with business need, and evolve in tune with the external business environment.

The IT Maturity Method provides tools to accomplish all of the above. Details can be seen at the following link: Vendor Integration.

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  1. Pingback: GM’s 2012 IT Transformation, an Evaluation based on the IT Maturity Method! | IT Maturity Blog

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