IT outsourcing can help you reduce costs, access specialized skills, and focus on your core business. But how do you ensure that your outsourcing projects are aligned with your objectives, expectations, and budget? Here are some tips on how to define the scope and goals of IT outsourcing projects.
Before you start looking for an outsourcing partner, you need to identify your business needs and challenges. What are the problems or gaps that you want to solve or fill with outsourcing? What are the desired outcomes and benefits that you expect from outsourcing? How do you measure and evaluate the success of outsourcing? These questions will help you define the scope and goals of your outsourcing projects and communicate them clearly to potential vendors.
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Prioritise the outcomes. Don’t try and boil the ocean but focus on those core outcomes that need to be achieved by the outsourced organisation matched to your needs. If some low value outcomes can wait then that is not always a bad thing.
Needs may vary based on the scale of the product, user pain-points and outcome expectations. Either way, the primary focus must lie on the most pressing areas. If you are developing the MVP from scratch, it is senseless to stuff it with features that don't bring you closer to the main goal right away. You can limit it down to a few and leave the rest for further sprints. Accurate prioritizing gets you to the right destination.
Prior to commencing your quest for an external contracting collaborator, it is paramount to first discern and comprehend your business prerequisites and obstacles. Understanding and articulating your company's requirements and areas of difficulty is a fundamental preliminary step in the process of seeking an outsourcing partner.
There are different models of IT outsourcing, such as staff augmentation, project-based, managed services, or cloud services. Each model has its own advantages and disadvantages, depending on your requirements, budget, and risk tolerance. You need to choose the right model for your outsourcing projects, based on factors such as the complexity, duration, and scope of the work, the level of control and involvement that you want to have, and the availability and quality of the resources that you need.
A contract is a crucial document that defines the scope and goals of your outsourcing projects, as well as the roles and responsibilities, deliverables, timelines, costs, quality standards, and dispute resolution mechanisms. You need to draft a clear and detailed contract that covers all the essential aspects of your outsourcing projects and protects your interests and rights. You also need to review and negotiate the contract with your outsourcing partner, to ensure that both parties are on the same page and agree on the terms and conditions.
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Never assume!! Always check with the outsourcer that alignment between your needs and their capability to deliver are tested. Don’t take their word for it. Take up references from the outsourcer but also proceed with caution here since references are very carefully picked by the outsourcer. It is too late to find gaps when the contract begins. By then, you could face a lot of CRs (change requests). These will only add to the costs particularly if they are unplanned.
Defining the scope and goals of your outsourcing projects is not a one-time activity. You need to manage the relationship with your outsourcing partner throughout the project lifecycle, to monitor the progress, provide feedback, address issues, and adjust the scope and goals as needed. You need to establish regular communication channels, reporting systems, and review meetings, to keep track of the performance, quality, and satisfaction of your outsourcing projects. You also need to foster trust, collaboration, and transparency, to build a long-term and mutually beneficial partnership.
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Support this important point with strong governance. Ensure all the right stakeholders from project management, delivery, testing, finance, support and customer success are locked and aligned to a formal governance structure. Keep senior stakeholders consistently informed of progress good or bad. They will help if progress stalls and reboot this process if you need to do so to regenerate interest and focus.
One of the best ways to improve your outsourcing projects is to learn from feedback. You need to collect and analyze feedback from your outsourcing partner, your internal stakeholders, and your customers, to identify the strengths and weaknesses of your outsourcing projects, and the opportunities and threats that you face. You need to use feedback to evaluate the results and outcomes of your outsourcing projects, and to implement changes and improvements as necessary. You also need to share feedback with your outsourcing partner, to recognize their achievements and address their concerns.
Defining the scope and goals of your outsourcing projects is not only about the present, but also about the future. You need to plan for the future of your outsourcing projects, by anticipating the changes and trends that may affect your business and IT needs, and by aligning your outsourcing strategy with your vision and mission. You need to explore new opportunities and challenges that may arise from outsourcing, and to leverage the best practices and innovations that your outsourcing partner can offer. You also need to prepare for the end of your outsourcing projects, by defining the exit or renewal criteria and processes.
Of course, it's impossible to foresee everything down to the tiniest detail, but you should have a plan for a rainy day. As the saying goes, hope for the best, and prepare for the worst. In the software development landscape changes are very frequent, so we often warn clients of possible course divisions.
It is essential to actively seek out fresh opportunities and potential challenges presented by outsourcing, capitalizing on the best practices and innovations that your outsourcing partner can provide. Embracing the potential for advancement and addressing any arising challenges can greatly contribute to the success of your overall outsourcing endeavors.