You're leading an IT outsourcing project. How can you ensure its success?

Some perspectives seem unorthodox but have proven effective in navigating the dynamics of complex IT outsourcing projects. 1) Assume the role of a 'Cultural Broker', someone deeply attuned to the nuances of both your own and your partner's organizational cultures. More than just managing expectations; having a deep sense of mutual respect, and understanding, having a shared purpose with cultural differences is a source of innovation and strength, than barriers. 2)Moving from traditional project management paradigms towards what I call 'Co-Destination' planning. Success is a shared journey, with both parties, equally invested in the project's outcome. Establish shared goals, values, and most importantly, shared accountability.

Good stakeholdering should be nr. 0 on the list, it presides all other steps. It is paramount to have a wide buy-in. - Business: are they aware and aligned with how things will work? - IT management: things change considerably when working with your own staff or when dealing with a managed service - you need a different governance and a different mindset - HR: especially if you are considering transfer of IT staff they are a key player, crucial to help you gain acceptance on IT staff level and with the unions - Procurement: make sure they grasp what you want to buy, and that quality of service is at least as important as a good price - Legal: for those nitty-gritty contract details that matter - Communications: have a good comms plan

Successful project management for a business involves several key factors, including: Clear goals and objectives: A project manager must have a clear understanding of the goals and objectives of the project. These goals should be communicated clearly to all team members to ensure everyone is working towards the same outcome. Effective planning: Planning is a critical component of project management. It involves identifying tasks, setting timelines, and establishing priorities. A project manager should create a detailed project plan that outlines every aspect of the project from start to finish. Flexibility: Projects can be unpredictable, and a successful project manager must be able to adapt to changes..

One of my clients once had a great observation. "If you want to know what you really have in IT, outsource it." If you are the buyer, it is important to remember three key things: 1. The outsourcer does this for a living...they are better at selling you the deal than you are at buying it. Engage a qualified advisor to support you. 2. The outsourcer will design the deal so that they never miss an SLA (see item 1). If you pull risk off the outsourcer's side of the table around SLAs that will translate into reductions in your costs. 3. You, as the buyer, are writing an RFP or Project to solve for your last problem in this space. The seller will make that problem go away, make sure you have enough flexibility to pivot to the next problem.

Na minha experiência, o mais importante é conhecer o negócio do Cliente e identificar como o Outsourcing irá contribuir para o negócio do Cliente. Essa jornada é que irá trazer sucesso para o Outsourcing. Para isso, há metodologias/técnicas que podem ajudar e tenho alguns casos práticos onde é possível notar de maneira muito clara e palpável esse ganho no processo de outsourcing.

Another important point of consideration for managing an outsourced software development is to choose the right provider for software development outsourcing. But, here the question arises: would you hire the very first service provider that sends you a proposal? No, you might not & that's quite obvious, researching for the alternatives that provide the same services is a feasible idea to find what works the best in your requirement. While outsourcing, choose for the partner that fits in your budget, language & other important aspects from a project management viewpoint.

An IT outsourcer needs to make in three areas: Expertise, Experience and Culture. While the first two are understood, since this is why we chose this company in the first place, the third match is overlooked. There will be times when requirements will change. Can we look that person in the eye and ask for some changes. There will be times when the things go bad in development: the specialist left the company, technology doesn't work as expected. Do they feel comfortable enough with you to admit those mishaps and work together on a resolution. If the culture fit is not there, then these things will be a problem.

From the start - Implement regular performance reviews to assess progress, address any issues promptly, and ensure that the project stays on track.

While choosing IT outsourcing partners for Banks we used to consider expertise and experience as a major factor. Example: If we are looking to build a Loan Management System: Does the vendor have specialized knowledge of the domain/system? Do they have resources who have previously worked in similar project. Internal references also play a key role as we can then check with our peers what was the quality delivered by the vendor.

Choose a provider with a good track record on delivering the type of work or solution. Providers must demonstrate they have the experience, expertise and capability to deliver the project. Should request recommendations, testimonials from other clients. The language and culture depending on the country is also an important aspect to consider. Choose a provider that is flexible and has a track record of long term healthy relationships with the clients.

Communication plays a very crucial role in life. Imagine you are able to communicate your thoughts properly, then would the listener understand what you are intending to say? No, they would never. That's when communication plays a vital role. Building the right communication channels will help you develop a smoother communication flow. Moreover, it is also necessary to plan who will be interacting with whom, what would be the communication tools & channels the organizational team members would be using, etc. deciding & planning the communication based on the above mentioned points can help you develop a smoother communication flow.

Setting up a solid communication plan is crucial in IT outsourcing post defining the project goals. Effective communication is vital when working with diverse cultures and languages to ensure everyone is aligned. A well-structured plan facilitates early issue identification, allowing ample time for resolution. Moreover, it aids in establishing clear expectations, ensuring the development partner comprehends the project specifics promptly. By addressing the why, what, how, when, and other critical aspects early on, potential obstacles can be overcome efficiently.

The Org should designate an internal specialist who will act as a bridge between the organization and the IT service provider(MSP/MSSP). 1. The specialist should be a highly qualified IT specialist who understands various domains and is able to monitor and navigate through critical situations. 2. That person needs to schedule regular IT meetings with MSP/MSSP. Also he should be the one scheduling any training sessions for non-tech employees within the or so they can also beware phishing or penetration attacks. 3. That person needs to create a document with the help of MSP on "how" and "who" to reach out in different situations to be able to resolve any issue ASAP and distribute it to all the employees.

From my experience, no project has gone the way people thought at the beginning. There are always things you didn’t considered, external factors affecting the scope, timing, resources, etc. But… if you’ve build enough trust within your team to articulate the issues/risks and a proper communication strategy, those things can be solved easily. We need to understand that at the end of the day we are people talking and working with people and as much as you can build that trust and team confidence, the better results you will get.

In brief, we relied on: 1. Zoom for video meetings. 2. Slack for instant messaging. 3. Jira/Asana for task organization and project management. 4. Google Drive for collaborative documents. These tools and practices ensured efficient communication and collaboration throughout the project. P.s: Additionally, having a skilled scrum master to guide us in following Agile principles was crucial for timely delivery.

Some imp risks and considerations: ( depending on the outsourcing vendor ) 1. Be ready to be involved way more than what you think . 2. Be ready with at least 2-3 months slippage 3. Be ready to correct and enforce process 4. Be ready to escalate till you get the desired rigor . 5. Be Cognizant of quality in the whole process rather than in the end during testing . This is largely because most organisations are looking for cost margins which come at the cost of processes and good quality resources . Also because in pursuits of profits few organisations have the bandwidth ( and sometimes the exposure ) to build the right culture and systems at the back end . Costs is not always good quality

Review on a monthly basis: - Results achieved versus plan - Present KPIs / SLAs - Plan for next deliverables and priorities - Review resource plan and adjust if needed to meet new baseline plan - Control and address issues and risks.

Many service recipients forget to focus on outsourcing readiness of retained organization. Sometimes there is not enough knowledge, skills and capacity retained or established upfront. And this normally takes more time to rebuild than to transition to an external supplier.

Apart from the above hygiene stuff, what really makes IT outsourcing successful is if both parties come on the table and act like true partners. The customer will always have unsaid expectations and ad hoc asks - it’s in the provider’s interest to ensure that they meet the same basis the relationship and not the letter of the contract. On the flip side, the provider will need some coaching and trust from the customer particularly during the early days and big milestones - the customer to extend the same as only if the provider succeeds the customer succeeds.

Delegating your IT project to an outsourcing partner doesn't mean stepping back entirely. It's essential to remain engaged, overseeing the project’s trajectory to ensure it aligns with your expectations and standards. This involves providing your outsourcing team with continuous feedback, guidance, and the support necessary to overcome any obstacles they encounter. Additionally, establishing a framework for regular communication through meetings, reports, and reviews is crucial. This structure not only facilitates transparent tracking of the project's progress and achievements but also enables the early identification and resolution of potential risks or issues, ensuring the project's success.

Implement A-B testing groups to compare different approaches or solutions. Monitor and collect data on performance, usability, and outcome metrics for both groups. Analyze this data to identify which solution performs better in terms of efficiency, user satisfaction, and overall effectiveness. Regularly reviewing these results helps in making informed decisions, adapting strategies, and continuously improving the project's outcomes. Ensure clear communication of testing protocols and goals with the outsourcing team to align efforts. This methodical approach to testing and evaluation not only enhances the project's success rate but also builds a foundation for ongoing improvement and innovation.

Additionally, conduct Customer Satisfaction surveys every other quarter to have alignment between outsourcing partner and end-consumer of service.

Additional Recommendations: Consider cultural differences and be sensitive to them in communication. Pay attention to compliance with local laws and regulations. Do not neglect security and data protection. Create a plan to proactively manage risks. Be flexible and open to changes when necessary.

Prior to accepting the final deliverables in an IT outsourcing project, comprehensive testing and evaluation are paramount. This entails verifying if the deliverables adhere to specified requirements, standards, and expectations, as well as legal and regulatory obligations. User acceptance testing, performance assessment, and security checks are indispensable to confirm the functionality, usability, and robustness of the deliverables. Additionally, meticulous documentation of any identified defects, errors, or required enhancements is essential for facilitating subsequent corrective actions and ensuring the overall quality and success of the project.

Base on value point 4, take the most crucial and weakness point to improve. Create action plan to improve the services. Keep monitoring on regular basis and measure the successful of improvement.

Outsourcing is a strategic decision and an organization should be very sure and clear of the value add it should bring, or the problem(s) it should solve. Depending on the model, outsourcing can be sometimes very attractive due to the financial savings (most providers will project it), however, it should not blind you. Make sure, you are not moving the problem from one place to another, or creating whole new ones. Make sure you select the right partner, there are several criteria to consider. If you are not capable of doing it yourself, find someone who can do it for you right, remember it is a big decision. Most importantly, have a very clear plan for the organizational change and the impact it will have.

In my experience with outsourcing, I have noticed a common issue where people discuss lessons learned, but fail to act on them at the beginning of new projects. This creates a major gap in the process. It is important to learn from past mistakes and adopt new ways of working rather than just talking about it.

I think this part is now established in our business. Regular review meetings completed with some retrospective meetings at the end of each major achievement are key to keep improving processes but also to put on the table the problems that have to be solve between people in order to keep sane relationships between project members (internal and external)

I've been on both sides of the fence and wanted some of my thoughts on this topic which may benefit buyers and sellers / operators - You can NOT outsource the A (accountable) in the RACI matrix - An outsourcing project is like a marriage, jointly working to realize longterm mutual success. - Outsoucing is NOT outtasking, don't manage the "How" but manage your outsource partner on the "What" (Deliverables & KPI) - If you pay peanuts, you get monkeys ... a contract should be benetial for both parties. Do not try to squeeze your outsource partner to maximize short term savings. You will bite your own tail in the long run - Seller: Do not just highlight sucesses but also share openly lowlights and how you learned to prevent future recurrence.

IT is core to every company and should be insourced as a competitive differentiator if you are looking to grow through innovation or acquisitions. It was a fashion but look at how much damage it has caused ..

One thing that is rarely considered until it is too late is the knowledge base to help the outsourcing partner be successful. The better the knowledge, the better the chance of success

Remember that you own the success or the failure of the project. While Outsourcing as a commercial arrangement will have its contracts and milestones, you have to work with each other like partners for the project to be successful. And it is here that the team from the outsourced partner that works for you becomes important. Treat the team that is working with you as your own and use your leverage with the outsourcing partner to help and support this team. Many a times these teams suffer due to lack of organizational support and you can use your position and influence to help them. Give the lead managing this team the confidence that you are willing to help and support. This rapport can become crucial in getting updates on project health.

Review the sourcing strategy and make sure it’s: 1. Relevant in the current climate 2. Understood and accepted by everyone involved in your outsource project 3. Accountability and governance is aligned to ensure you are set up for success