(a) renegotiation/renewal of the service contract; or
(b) exit management either by:
(i) the service being brought back in-house (in practice this is rare); or
(ii) the appointment of a new service provider (most likely course).
Outsource of IT is not a new concept: many organisations are into their second or third generation of outsourcing. Traditionally the financial sector and the motor, defence and aerospace industries have dominated the outsourcing market. In the construction sector outsourcing is not unfamiliar but is a more recent phenomenon. Contractors have outsourced IT as customers to third party service providers. They have also, and increasingly, set themselves up to provide outsourced IT services to their clients, having identified outsourcing as a means of securing long term profit growth. In this briefing we look at contractors choosing to outsource IT as the customer and we focus primarily on IT outsourcing. We take a look at the pros and cons of choosing to outsource IT, issues relating to employees, global deals and off-shoring, and how to plan and prepare for a successful outsourced IT.
What are the pros and cons of outsourcing?