7 Signs You've Outsourced Too Much to IT Service Providers
Have you outsourced too many IT services? Once an organization gets a taste of the benefits of IT outsourcing, the hunger for more naturally increases. But the ROI quickly diminishes as internal IT service organization shrink. If these seven traits apply to your company, you've outsourced too much.
Fri, January 06, 2012
CIO — The lure of IT outsourcing is strongfrom the promise of better service levels and lower costs to the premise of freeing up internal resources to focus on strategic business issues. And if your IT service providersand, let's face it, a few of your CXO peershad their way, you'd send it all out the door to a third-party.
Smart IT leaders understand that successful outsourcing requires a balance of internal and external skills. At a minimum, CIOs "need a sufficiently robust internal IT organization to keep the supplier honest, assist in dispute resolution and get maximum value from the relationship," says Bob Kriss, a partner and litigator in the outsourcing practice of Mayer Brown.
But it's a slippery slope. Once an organization gets a taste of the benefits of outsourcing one tower of IT service, appetites for further third-party provisioning naturally increase. Before long, the portfolio of outsourced IT work balloons, but the benefits begin to wane as the internal IT service organization grows anemic.
How much IT outsourcing is too much? That depends on the customer. But here are seven surefire signs you need to bring some work back in-house.