Outsourcing Management: How better Outsourcing Management help CIOs in Successful Outsourcing

"Will I be able to manage it?" This is the first and the most important question that every CIO should ask himself before outsourcing. In a study conducted by Deloitte Consulting, 62 per cent of respondents said that outsourcing required more management than they expected. Managing your outsourcing venture is critical to the success of your project, but is an area that has not been given its due importance.

The costs involved in managing the outsourcing process could be a cause for worry. But this expense is worth the money to ensure that the whole purpose of outsourcing is met. Make sure you clearly plan out your management strategies and adapt them to outsourcing. Whether your business is small or big, a systematic management framework will produce the following benefits and improve your outsourcing business.

What are the core functional areas I need to focus on?

There are certain areas of your outsourcing business that need consistent attention. Concentrating on these areas will greatly increase your control over the course of the outsourced project.

Cost Management

The main attraction of outsourcing is of course the cost benefit element. However, cost is a very deceptive phenomenon. Companies might offer to do your project at very low costs, but there are chances of the initial cost running up to a much higher overall cost. To avoid this risk, analyze the scope, the long term cost and other benefits right at the beginning of your project and arrive at a reasonable consensus on cost.

Performance Management

You'll have to strike a balance between the actual performance levels and the ideal performance standards of your outsourcing project. The core issue in performance management is the time factor. Make sure that the project does not lag too much. To ensure this, targets have to be specified, review and analysis has to be done on a regular basis.

Communication Management

The process of making the decision to outsource your business to actually getting your work done is a long one. This demands constant and effective communication between the outsourcing partners. You will have to establish proper communication channels that facilitate open communication. The main advantage of maintaining good communication with your outsourcing partner is transparency in all activities.

To ensure better communication management, ensure you:

CIOs and other top level management need to get themselves involved in the process. Though it might be difficult to keep a complete track of the project, regular check on the progress of the project by the top level management will dramatically help in ensuring the successful completion of the projects.

Risk Management

The risk factor is the biggest concern in outsourcing. A complete assessment of possible risks will give you an upper hand in being aware of your risks and covering them for better efficiency.

Crisis Management

Ensure that your management is financially and professionally equipped to deal with contingencies. With a good outsourcing partner, crisis management will not be a difficult issue.

Knowledge Transfer Management

Knowledge transfer has a direct influence on productivity. When you are transferring knowledge about the proposed project, make sure you give adequate information and knowledge to your outsourcing partner. This process of knowledge transfer should be constantly monitored and effectively carried out to ensure better productivity.

Relationship Management

Once you are sure that the outsourcing vendor you have chosen is a credible outsourcing partner, work towards founding a strong long term relationship. For this you'll have to create scope for the following.

How to organize your in-house management?

A CIO’s responsibility in an outsourcing scenario also involves a lot of work with equipping in house capabilities to match your outsourcing requirements.

1. Outsourcing Strategy building
2. Evaluation and decision making
3. Contract development
4. Outsourcing management

About IWD

IWD is the .NET division of Bangalore based Stylus Systems Pvt. Ltd. IWD offers qualified and experienced .NET Software Engineers on contract to global companies to work from IWD premises. CIOs whose roles are changing from purely technical to business oriented solutions development find our .NET Software Engineers very useful and productive towards realizing their company’s goal and the overall development of the IT department. Contact us with your outsourcing requirements. Our Client Engagement Team will get back to you within 24 hours.

With our experience in handling over 250 clients across the globe, we have designed efficient processes which will help CIOs and IT managers in providing a valuable contribution in reaching their business goals. This has helped us in gaining quality experience with technology and we specialize in .NET technology.

Our pool of .NET Software Engineers have been trained and seasoned in adhering to quality standards and processes.
Contact us to hire our .NET resources