Key Considerations when Outsourcing IT Requirements

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Key Considerations when Outsourcing IT
REQUIREMENTS
2018
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In this digital age, back office outsourcing
plays a critical role in better business
management. In addition to providing cost
savings, outsourcing IT and other time consuming
tasks to a reliable vendor can help improve an
organizations productivity and efficiency.
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Outsourcing various processes requires serious
consideration as it can have considerable impacts
across the organization. Here are some important
things to remember when outsourcing your IT
requirements

• Considering human capital is vital, as the
  remaining in-house personnel may question the
  companys commitment to its employees.
• Explain the reasons for outsourcing certain
  activities to your in-house personnel.

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• Either deploy displaced employees to other areas
  of the business or provide them training that
  will help them find a new job.
• Allow employees to interact with overseas
  employees, though there may be cultural and
  language challenges to overcome.

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• When outsourcing IT, you need to heed investor
  preferences.
• If investors prefer you maintain technical
  expertise in-house, consider employing one chief
  technology officer (CTO) and one or two skilled
  developers.
• This will give you more control over internal and
  external development processes as well as the
  chance to outsource a larger share of your
  programming work.

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• Organize all aspects of your software development
  project well.
• This will help you describe the task clearly and
  maintain clear documentation.
• Implement relevant processes to ensure that
  everyone stays engaged and productive
• Remote developers should know where to deploy
  their code, who will test and accept it, and how
  it can all be merged in production.

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• Never stick to a fixed cost model as the need to
  provide and approve estimates can cause delays
  and lead to the failure of the project.
• Use a dedicated team model where your remote
  employees would be part of your own development
  team.
• If you are not satisfied with the performance of
  the remote employees, request your outsourcing
  partner for a discount or replace them
  eventually.

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• Make sure that the vendor you choose has the
  necessary skills and advanced technologies.
• IT expertise is essential for data analytics,
  cloud computing, cyber security and mobile app
  development.

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A real world example that proves that outsourcing
is beneficial would be the case of Proctor
Gamble. This innovative company outsourced its
functions, creating a collaborative and win-win
relationship with its partners. While back
office outsourcing is a practical option to
reduce costs and improve productivity, success
depends on choosing the right vendor with
relevant experience in the industry.
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