This time, Cloud looks here to stay, and quite possibly overtaking all other forms of outsourcing. Even the low cost model of offshoring can’t compete – no labor is cheaper than cheap labor.
The cloud is here and screaming for attention. Every strategic IT group within the legacy organizations I am working with has been mandated by the senior executives to have a cloud strategy by the end of this year to rollout in 2015. Not to meet a particular business strategy per se, but to be seen to be doing otherwise is being seen as doing nothing.
Cloud computing agreements vary widely across the many providers and the many forms of cloud services. The contract can range from a vendor’s standardized click-wrap agreement for a vanilla SaaS to a multi-layered, heavily negotiated contract comprised of SaaS, PaaS, and IaaS in public and private clouds.
A hybrid of outsourcing and insourcing is the most common sourcing strategy for information and communications technology (ICT) in organizations today. It’s very rare to see an organization that has outsourced 100% of its ICT needs to third parties; likewise, it’s rare to see one that keeps everything inside.
When an organization is considering outsourcing in any of its “shore” forms (offshore, nearshore, onshore), rumors will spread like wildfire, fueled by rampant speculation regarding motive. This Executive Update walks you through the process of knowing who the stakeholders are and what they want to know over the outsourcing lifecycle. More important, the Update suggests how to allocate your scarce time and effort to what really matters.
Benchmarking of outsourcing contracts has recently become a highly desired practice by client organizations, but it is often poorly executed. It can be a difficult and expensive process regardless of how services are sourced, internally or externally. This two-part Executive Update walks you through a few of the issues, including approach options and opportunities to consider when thinking about benchmarking as part of an outsourcing decision or deal.
The “human side” of an outsourcing deal may be difficult to visualize at first, but if the fears and apprehensions of your staff are not managed well, it may not be long before it is the leading problem your organization faces. This Executive Update takes a brief look at some of the factors and issues that must be planned for when staff will be affected by outsourcing.
A good contract is important to outsourcing; this is an indisputable statement. The contract is the legal basis of the outsourcing agreement and therefore of fundamental importance. However, there are two different research-based views as to just how important the contract is.