How can you use other industries' best practices to outsource IT?

1 Define your goals and scope

Before you start looking for an outsourcing provider, you need to have a clear vision of what you want to achieve and what you need to outsource. This will help you avoid scope creep, miscommunication, and conflicts later on. For example, in the manufacturing industry, companies often outsource non-core activities such as logistics, packaging, or quality control, while retaining control over design, production, and innovation. Similarly, in IT, you can outsource tasks that are not central to your business value proposition, such as maintenance, testing, or support, while focusing on your core competencies and strategic goals.

2 Choose the right partner and model

Finding the right outsourcing partner is crucial for the success of your IT project. You need to evaluate their expertise, experience, reputation, and compatibility with your culture and vision. You also need to decide on the best outsourcing model for your needs, such as offshore, nearshore, or onshore, and the type of contract, such as fixed-price, time-and-materials, or dedicated team. For example, in the healthcare industry, companies often outsource clinical research and trials to specialized firms that have the necessary infrastructure, equipment, and personnel, while maintaining oversight and quality standards. Similarly, in IT, you can outsource complex or specialized tasks to experts who have the required skills, tools, and methodologies, while keeping control and visibility over the project.

3 Communicate and collaborate effectively

Communication and collaboration are essential for any outsourcing relationship. You need to establish clear and frequent communication channels, such as email, phone, video conferencing, or chat, and use tools that facilitate collaboration, such as project management software, cloud services, or shared documents. You also need to define roles and responsibilities, expectations and deliverables, feedback and reporting mechanisms, and escalation and resolution procedures. For example, in the education industry, schools often outsource online courses or programs to third-party providers that have the necessary technology, content, and instructors, while ensuring alignment with their curriculum and standards. Similarly, in IT, you can outsource online services or platforms to providers that have the necessary infrastructure, security, and functionality, while ensuring integration with your systems and processes.

4 Manage risks and challenges

Outsourcing IT involves some risks and challenges that you need to anticipate and mitigate. These include cultural and language differences, time zone and geographical distance, legal and regulatory compliance, data protection and privacy, quality assurance and testing, change management and innovation, and performance measurement and evaluation. For example, in the hospitality industry, hotels often outsource housekeeping or laundry services to external contractors that have the necessary equipment, staff, and procedures, while ensuring compliance with their brand standards and customer satisfaction. Similarly, in IT, you can outsource services or applications to vendors that have the necessary certifications, policies, and practices, while ensuring compliance with your industry regulations and customer expectations.

5 Evaluate and improve continuously

Outsourcing IT is not a one-time deal, but an ongoing partnership that requires constant evaluation and improvement. You need to monitor and measure the results and outcomes of your outsourcing project, using metrics and indicators that reflect your goals and scope. You also need to solicit and provide feedback, both positive and negative, and implement changes and improvements, both incremental and radical, based on the feedback. For example, in the retail industry, retailers often outsource inventory management or delivery services to external partners that have the necessary software, hardware, and vehicles, while tracking and optimizing their inventory levels and delivery times. Similarly, in IT, you can outsource software development or maintenance to partners that have the necessary frameworks, platforms, and methodologies, while tracking and optimizing their software quality and performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?