What are the best ways to monitor outsourced IT governance?

1 Define clear objectives and metrics

One of the first steps to monitor outsourced IT governance is to define clear and measurable objectives and metrics for the outsourced IT function. These should be aligned with your business strategy, expectations, and requirements, and reflect the value and outcomes you want to achieve. You should also agree on how and when to measure and report these metrics, and what actions to take if they are not met. Some examples of metrics are service level agreements (SLAs), key performance indicators (KPIs), and customer satisfaction surveys.

2 Establish regular communication and feedback

Another key way to monitor outsourced IT governance is to establish regular and effective communication and feedback channels with your IT service provider. You should communicate your expectations, priorities, and issues clearly and timely, and listen to their feedback, suggestions, and concerns. You should also have a dedicated contact person or team on both sides, and schedule frequent meetings, calls, or emails to review progress, performance, and risks. Communication and feedback can help you build trust, transparency, and collaboration with your IT service provider.

3 Conduct audits and reviews

A third way to monitor outsourced IT governance is to conduct audits and reviews of the outsourced IT function. Audits and reviews can help you verify the quality, security, and compliance of the IT services delivered by your provider, as well as identify any gaps, weaknesses, or opportunities for improvement. You should conduct audits and reviews based on a predefined plan, scope, and frequency, and use objective and reliable methods and tools. You should also involve relevant stakeholders, such as internal auditors, external auditors, or regulators, and share the results and recommendations with your IT service provider.

4 Implement change management and escalation processes

A fourth way to monitor outsourced IT governance is to implement change management and escalation processes for the outsourced IT function. Change management is the process of managing and documenting any changes to the IT services, such as requirements, scope, budget, or schedule. Escalation is the process of resolving any issues, conflicts, or disputes that arise between you and your IT service provider. You should have clear and agreed-upon procedures and criteria for change management and escalation, and communicate them to your IT service provider. You should also monitor and track the status and impact of any changes or escalations.

5 Evaluate satisfaction and value

A fifth way to monitor outsourced IT governance is to evaluate your satisfaction and value from the outsourced IT function. Satisfaction is the degree to which you are happy and satisfied with the IT services delivered by your provider, and value is the degree to which you are achieving the expected benefits and outcomes from the outsourcing arrangement. You should evaluate your satisfaction and value regularly and systematically, using methods such as surveys, interviews, or focus groups. You should also compare your satisfaction and value with your objectives and metrics, and identify any areas for improvement or adjustment.

6 Learn and improve

A sixth and final way to monitor outsourced IT governance is to learn and improve from the outsourcing experience. Learning and improving is the process of collecting, analyzing, and applying the lessons learned and best practices from the outsourcing relationship, and using them to improve your IT governance and performance. You should learn and improve continuously and proactively, and involve your IT service provider in the process. You should also celebrate and reward the successes and achievements of the outsourcing relationship, and foster a culture of innovation and excellence.