Balancing cost reduction and service quality in IT outsourcing: How do you navigate this delicate tightrope?

End users should be fully involved in defining service quality before procurement commences. This will ensure that costs position will always be aligned with quality. Trade offs may need to be made on the way - as long as there is representation on the relevant forums of those who care about quality and cost, the balance will be maintained.

While you can negotiate SLAs and Pricing during procurement, but having a effective governance which drives business value for relationship. Having commitment to drive continuous improvements and gamification of business value add, will help both customers and partners in long term, togather they can achieve good value for business

Outsourcing IT can be a strategic move, but it's a balancing act between cost and quality. Key tips: * Prioritize quality: Evaluate vendors beyond price. * Set clear expectations: Define requirements in SLAs. * Monitor performance: Track KPIs and adjust as needed. * Build a strong partnership: Foster trust and collaboration. * Consider a phased approach: Start small and gradually increase outsourcing. By following these guidelines, you can ensure that your IT outsourcing is a strategic asset.