| If a significant amount of time or money is spent | | | | team offers the most value and flexibility in a |
| fighting IT fires without a good way to measure | | | | strategic relationship. Below is a list of key criteria |
| and manage the value to your organization, then | | | | that are common for long-term outsourcing |
| this paper provides a solution. The following is | | | | success: • Ensure an established pricing and |
| condensed version of our article, to read the | | | | delivery model is in place • Verify that the |
| entire article please go to Overview and Position | | | | outsourcing company can do more than reduce |
| Does it seem like the IT function is taking more | | | | costs, • Establish strong communication and |
| of your time than ever before? Do you feel the | | | | reporting on a consistent basis. • Ensure visible |
| need to bring a yardstick into the department | | | | processes exist relating to the transition of |
| each time? CFO Magazine surveys indicate that | | | | services, stabilization of the relationship |
| financial executives are spending nearly 20 | | | | environment, and incorporation into the business |
| percent of their time dealing with IT concerns, an | | | | planning activities. • Determine that the |
| increasing allocation of time. If a significant amount | | | | operational processes for support cross all |
| of time is spent fighting IT fires without a defined | | | | functional teams and are aligned to best practices. |
| mechanism or metric to ascertain its value to the | | | | 3. Establish Strong Relationship and Communication |
| organization, then this paper provides a solution. | | | | Process Relationship–building and partnership |
| Selective IT Outsourcing As CEOs continue to | | | | are the most important factors in an outsourcing |
| expand the innovation needed to continually | | | | agreement. Service Level Agreements |
| compete and address competitive advantages, | | | | expectation issues are much easier to manage |
| the financial executive plays an important role. | | | | than the soft issues such as people and |
| This includes assuming the accountability for | | | | communications management. In the absence of |
| ensuring the organizations processes, people, and | | | | open and honest dialog with the firms account |
| infrastructure meet both the needs of today and | | | | management, the true business results for IT |
| opportunities for tomorrow. One way to make | | | | spend will not ultimately be achieved. 4. Business |
| significant progress in achieving these items | | | | Intelligence - Information is Power Access and |
| includes selective IT outsourcing. This is vital in | | | | interpretation of key data reflecting real |
| driving innovation, growth, and ultimately a | | | | operational costs and actual service levels is vital. |
| company’s competitive advantage. 1. Begin | | | | Some vendors will keep this close to the vest, as |
| with What You Already Have The first and often | | | | it may serve to their interests more so than |
| overlooked task is defining the business | | | | yours. In addition, do not accept raw data, leaving |
| requirements and reviewing them against what is | | | | your financial team the responsibility of doing the |
| already in place. Focus the initial attention on the | | | | true analytical work that an outsourcer is in a |
| resources currently in place, both capital and labor. | | | | better position to review. In 1987, Steve left his |
| Most companies have overcapacity in their capital | | | | career as a CPA to take the “easy” road |
| investments, including misalignment of IT to the | | | | of starting a networking VAR. Steve, his partners |
| business. 2. Identify a Strong Outsourcing Partner | | | | and staff have worked to grow Techcare to, be |
| The number of alternatives for outsourcing IT | | | | a successful and profitable company serving Small |
| can be overwhelming. Given the importance of | | | | Business Professional Service Firms and various |
| aligning IT with the business, establishing a strong | | | | niche markets in the Chicago, IL area, including the |
| relationship with a firm local to your management | | | | Creative and K-12 Education markets. |