NEWSLETTERS
 

CIO.com updates, insights and advice on technology, management and your career.

 CIO BlackBerry News and Tips
 CIO Research and Analysis
 CIO Microsoft
 CIO Insider
 
 
 
SUBSCRIBE TO CIO
 
Are you involved in setting the direction for your company's IT budget or strategy?

Apply today for a FREE subscription to CIO Magazine!

 


Thu, Oct 29, 2009 15:26 EDT

You and Your Outsourcer: Take a Relationship Survey

Like in any good relationship, outsourcers and clients need to assess just how healthy things really are.

Topic: Partner/Vendor Management

Blog: Inside IT Outsourcing

Current Rating: 0 Comments: 3

It’s unfortunate, but many companies think once the outsourcing deal is signed, the work is done. Ah, but only if it were. In fact, the perfect parallel to this faulty logic is to think that once the wedding day has wrapped, the work is done (okay all ye who have married, you can stop snickering). Truth is, the work has only just begun.

 

But one of the most difficult challenges companies face is that of managing their outsourcing relationships.  First, there’s the transition. If you’re turning over the keys to your data center, it is going to take some time for employees to move on (hopefully, for their sakes, to other, more pressing tasks within your organization). The outsourcing folk will need to be briefed and updated and groomed to your liking. Once that’s done, you’ll need to determine how outsourcing that function impacts all your other business processes.  Someone else is running your data center, so what do your application developers need to differently?

 

And there’s more. You’ll need to set up a service-level agreement and establish ways to determine whether or not your outsourcer is meeting those levels. You’ll need to continually evaluate the services levels and the agreement. Then, of course, you’ll need to regularly check in on just how healthy the outsourcing relationship you’ve signed up for really is to your overall business. There’s lots of ways to do this, but do do it. If you’d like some guidance, why not take a relationship survey? Er, a what?

 

Just recently, the International Association of Outsourcing Professionals (IAOP) introduced a diagnostic tool that’s designed to help companies measure the health of their outsourcing relationships. Called the Value Health Check Survey (VHCS), the tool walks companies through a survey asking them to prioritize statements in five areas that are vital to optimizing business value in outsourcing: financial performance, service quality, capabilities, risk and compliance, and governance.

 

Then, the tool compiles the results in order to show companies the key drivers and trends that are influencing the value they are deriving from outsourcing, and also how their relationships compare to their peer groups. In a news release, IAOP chairman Michael Corbett likened the VHCS to a regular medical checkup, and it shouldn’t take much longer than a doctor’s visit. The survey is designed to take about an hour (really, is an hour asking too much? It is your relationship we’re talking about here). The results can be available in several weeks, according to the IAOP. The survey is being offered as a new service to IAOP members as a benefit or with discounts, depending on membership level, and is also available for purchase to non-members.

 

So, what all do you do to invest in and improve the health—and business value—of your outsourcing relationship?

 

 


You do not have flash or javascript support.
Average (0 votes)
0
 
 
Thu, Oct 29, 2009 23:31 EDT
Anonymous user
Posted by: CCIEAdvisor
Rating:

Its imperative to arrange in advance for re-definition and scope creep control. The arrangements are made and then the scope creep sets in, the problem with that is that cost start to rise and then where do all the savings and efficiency go?

 
Fri, Oct 30, 2009 2:02 EDT
Anonymous user
Posted by: Jeny
Rating:

It is really important that both clients and service provider have a healthy relationship. If one of them fails in this area, it is the business that will suffer which both of them will not like it either.

 
Fri, Oct 30, 2009 2:14 EDT
Anonymous user
Posted by: thinker
Rating:

It is really important to build rapport between the client and outsourcer. For companies, I think they should try the Value Health Check Survey (VHCS),to find out the status of their relationship.

Post new comment

* Subject:
* Username:
* E-mail:
The content of this field is kept private and will not be shown publicly.
Homepage:
* Body:
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <img> <blockquote> <strike> <p> <br>
  • Lines and paragraphs break automatically.
More information about formatting options

* Denotes required field.

About this Blog

News, opinion and discussion about the IT services industry, H-1B visas and the practice of sourcing IT work through onshore and offshore vendors.

Start a Conversation
Click to post

Got something to say? We want to hear it! Click the Post button to get started. GO»

EXPERT ADVICE
See our roster of experts.

Advice & Opinion from more than 113 of IT's most insightful thinkers.

  PARTNERS       WEBCASTS    
 

Windows 7 Webcast Series

There's a lot of buzz about Windows 7 out there. Each month in our webcast series, listen to analysts and customers discuss how Windows 7 and the Windows Optimized Desktop is impacting large companies around the world. Learn how they evaluated Windows 7, including the cost of deployment, deployment strategies, and tangible benefits.

Sponsored by Microsoft  Listen to on-demand Recordings »

 

Service Level Management Best Practices Life Cycle Overview - Improve Service Levels

Best practices for Service Level Management (SLM) is a process for consistently meeting customer requirements and delivering on IT's promises. See the steps required to ensure high-quality SLM.

Sponsored by Compuware  Read this White Paper »

 

Keeping Your Members Safe from Online Scams and Predators

In order to keep fraudsters out, romance sites must deploy effective solutions that look at information independent of what is supplied by users. A device fingerprinting solution such as iovation ReputationManager™ provides unique insight into the computers being used to create multiple accounts and exposes hidden device-account relationships that identity-based fraud solutions often miss.

Sponsored by iovation  Read this White Paper »

Resource Alerts

Get instant email notifications by topic when white papers, webcasts, and case studies are added to our library.

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

Defend Against Blended Threats: What You Need to Know

Blended Web and email threats are becoming increasingly complex and represent a huge...  View Now »

 

Prescriptive Actions to Reduce Risk

In this Webcast, learn best practices for effective systems management in a heterogeneous environment and keep client systems cost under control.   View Now »

 

Webcast- Vantage 11: Redefining Application Performance Management

Compuware's latest release, Vantage 11, is a major advance in end-to-end application performance management--bringing together proactive issue identification, quantification of business impact and problem resolution into a single solution. Tune in to learn how Vantage 11's top-down approach helps you make better decisions and dramatically lower operations costs.  View Now »

Resource Alerts

Get instant email notification when white papers, webcasts, and case studies are added to our library. Don't just be up-to-date—be up to the minute with our new Resource Alerts.

 
NEWSLETTER

Sign-up for the Blogs & Discussion Newsletter

 
FEATURED SPONSORS
 
 
 
SPONSORED LINKS
 

Return on Information: Google Enterprise Search pays you back. Get the facts.

VMware. The source for Business Infrastructure Virtualization.

ShoreTel tells businesses to untangle from competitors' complexity and turn to its brilliantly simple UC solution

See how AT&T can help protect your network.

Streamline IT Costs. Boost Performance with WAN Optimization.

Build your 1st app FREE with Force.com

TDWI checklist helps define data readiness for analytics. Download report.

A Clear View Toward Virtualization

Virtualization Technology as a Business Solution

The rules of infrastructure management just changed.

A Clear View Toward Virtualization

Interactive Q&A helps you discover key ways to maximize IT assets.

Ready to virtualize tier one applications? Check your virtualization maturity.

Think you can't afford a Cisco Switch? Cisco Catalyst Switches are now more affordable.

Five minute business analytics assessment. Immediate results.

The Case for Investing in Business Analytics Technology. Read white paper.

Upgrading to VMware vSphere with vWire

Top 10 Lessons Learned for Corporate 3G Mobile Broadband Deployments

CRM Built for IT: The Executive Guide to Selecting CRM that Meets IT Needs

Return on Information: Google Enterprise Search pays you back

ROI of Application Delivery Controllers

Making Consumer Two-Factor Authentication Simple and Cost-Effective

Mining the Cloud to Ease the Enterprise Compliance Burden

Solve Five Key IT Security Challenges with Cloud-Based Authentication

White Paper: Right-Sizing Your Power Infrastructure

AT&T Synaptic Storage as a Service. Expand on demand

Trend Micro ranked #1 against real-world malware. Read more.

Webinar: Jump-start your in-house e-discovery with Ringtail QuickCull from FTI Technology

Top Five CIO Challenges

Read the RSA report: Security for Business Innovation

64-page prescriptive guide to security, compliance, and IT operations.

Increase UPS efficiency without sacrificing protection.

eZine: A Roadmap to Reducing IT Complexity

Reduce risk, gain agility. See how Progress can help your business.

Virtualization Technology as a Business Solution

eZine: A Roadmap to Reducing IT Complexity

World-class trading technology solutions from NYSE Technologies.

If You're Paying for Telecom, You're Paying Too Much. Contact Asentinel Today.

Trade-In your old printer and save up to $1,000 plus free recycling!

infoBOOM! - The Mid-Sized Company CIO's Exclusive Community

Live Webinar: Applying Business Analytics. Click here to learn more

Removing Barriers To Better Server Virtualization Efficiency

4G Revisited. The Continued Evolution of Wireless Mobility.

What's Next for Enterprise Resource Planning?

Maximizing website Return on Information with high-quality search

Gartner Magic Quadrant, Application Delivery Controllers 2009

Authentication as a Service by Forrester Research

Cloud-Based Authentication for Next-Generation Extranets

Cut Costs & Green Your IT Operations with PC Power Management

White Paper: 4 Customer Service Myths