Implement IT outsourcing projects professionally

Whether it's more reliable IT or lower costs - the expectations of IT outsourcing projects are many and varied. To ensure that expectations are met "in time and budget", a number of things can be done right - but also wrong. The following checklist is recommended for the successful implementation of IT outsourcing projects:

1. create transparency

At the beginning, you get an overview: How many locations, IT workstations, clients, servers, printers, LAN ports does my company even have? And precise knowledge of data on current service levels and current IT costs and cost drivers is particularly important. As an outsourcer, you should be able to describe the initial situation transparently and paint a realistic picture of what can be brought in in terms of resources and budget: Target requirements - cost savings? Higher service levels? Global standardization? More flexibility? - should already be clearly defined and communicated at this stage. You should formulate the goals as concretely as possible and prioritize them according to importance. For example, how important is fast on-site support? A transparently presented current situation and the definition of goals is the foundation for a successful project, not only for the company itself, but also for the future outsourcing partner.

2. good preparation

Now it is a matter of allocating responsibility and areas of authority. In the Current Mode of Operation (CMO) phase, a project team is put together to deal with the award project and develop a project plan. The support of employees who bring necessary experience to handle the upcoming tasks is especially important at this time. A decision should also be made at this stage as to whether IT should be outsourced via an "interim state," the CMO+, or possibly in small "easily digestible" chunks. Finally, the Future Mode of Operation refers to the target state when the IT systems and contractually defined IT processes have been taken over by the service provider.

3. realistic planning

The most important resources are time and budget. They must be realistically estimated, as must, for example, the availability of employees and dependencies on other projects. It is also important to identify the potential "critical paths", i.e., those processes whose effects determine the minimum project duration and which do not allow for buffer times, so that delays here have an immediate impact on the planned end of the project. Those who have an eye on "critical paths" and are clear about resources - from staff to costs - will stay on "time and budget" in the end.

4. fill current gaps

Only those who precisely define the volumes, required service levels and scope of services of the IT systems or processes to be outsourced will find the optimal service provider. For example, the age and value of equipment and machines, the efficiency of processes, and maintenance and license agreements must be recorded so that providers can analyze the IT systems and processes to be outsourced in the subsequent due diligence phase and submit their offers.

5. provide information

Due diligence is about systematically collecting and gathering data about the existing IT systems: How many clients are there in each department in the first place? How many PCs and servers does the company use? What (support) contracts are currently in place? These and other questions must be answered in order to draw a detailed picture of the current situation. At the same time, the survey can create acceptance for the entire project in the respective departments - at this point, they come into concrete contact with the outsourcing project for the first time. This is where the management level is called upon: It must make it clear that data collection may be a nuisance, but it is also necessary.

6. keep business in view

IT is not an end in itself, which means that despite the elaborate contracting project, clients should definitely keep their business in mind. After all, most companies outsource their IT in order to be able to concentrate better on their core business. It is therefore advisable to always involve the relevant employees in crucial points (requirements, budgets, wishes, implementations). Planning must ensure that current operations are not neglected during the entire project phase and that business continues as usual.

7. pursue goals

The more extensive and time-consuming the contract award project, the higher the risk of getting bogged down. The project can only be implemented with precise and written target requirements. The actual status, (interim) goals, time frame and budget must be defined precisely and checked again and again during the course of the project. All participants should know, accept and systematically pursue the goals.

8. make decisions (in time)

Decisions are quite simple: they have to be made. When making a decision, it is usually even better to expose oneself to the risk of making a wrong decision here and there than to decide too late or not at all. It is advisable for outsourcing companies to consider at an early stage what is to be done with the existing hardware and how license management and other ongoing IT-related contracts are to be handled. Such aspects have a direct impact on the contract with the service provider and thus on the costs.

9. define governance

Companies that want to outsource their IT (processes) should define and establish future governance in good time. To this end, various points must be defined along the outsourcing project: The company's own future organization must be established, the split-of-work must be agreed with future partners, and internal interfaces to the business must be established. Basically, the following questions arise: What should your own organization look like? How should the project be managed during implementation and how should the partner be managed in the future?

10. implement project

It is not uncommon for the contract award project to drag on for months with the invitation to tender. After the award project, one thing is certain: the implementation of the project. This is where everything that was already taken into account during the award project comes into play. If you keep the 10-point plan in mind, the foundation for a successful project completion "in time and budget" is laid.

Retis Consulting Group https://www.retis-group.com