Monday, July 1, 2013
Large number of companies today are turning to service providers for enterprise application management.
And Outsourcing promotes innovation and optimization of the
application environment…but only if you work with the right partner and
you streamline internal IT processes.
Organizations
must maintain effective project management and internal process
consistency. Without these things, outsourcing relationships will be
difficult at best.
The key to a successful outsourcing relationship starts with
improving internal processes, then selecting the right enterprise
application management provider. To determine if you’ve found the best
fit and to identify any provider or internal weaknesses before you
commit to a long-term contract, Forrester recommends you collect the
following information:
- Project management track record. When considering outsourcing enterprise application management, companies need to evaluate how a provider performs project management functions. In other words, you need to ask what percentage of complex IT projects were delivered within established time and cost parameters. A high percentage indicates a competent provider that can accurately manage project scope. If the outsourcing provider’s record isn’t as strong as it should be, you may have to spend time and money reworking projects.
- Project management expertise. You want to evaluate the backgrounds of the enterprise application management provider’s staff. For example, you should find out what percentage of the staff is PMI-certified. Expert project management is necessary to successfully manage IT projects and resources. You also want to know the percentage of projects managed through a central program management office, or PMO. PMOs ensure consistency and quality.
- Communication and collaboration tools. Distributed projects rely on content sharing tools, real-time communications and advanced workflows. If the provider relies on manual processes, you risk decreased efficiency in enterprise application management. To promote the best possible working relationship, you should carefully evaluate how a service provider will work with your staff.
- Standardized internal processes. A service provider has to understand and accommodate your company’s numerous processes. You may be in for a rough ride if they do not have experience or a process for conducting this knowledge transfer. It’s much easier if your organization follows a single standardized development and maintenance process that the outsourcer already has established. Check out the audit report for confirmation that they create and follow appropriate processes and procedures.
- Managing to SLAs. Service-level agreements (SLAs) ensure outsourcing providers meet their obligations and service commitments. They establish mutual responsibility. Companies currently using SLAs, or that have experience with them, will be better positioned to establish meaningful parameters with the enterprise application management provider.
- User acceptance testing. An organization should have a formal internal approval process for delivery of projects. Prior to approval, users typically participate in acceptance testing. This type of process is essential to outsourcing relationships. When working with a service provider, a company must be able to accept systems or changes prior to production. Any delays on the company’s side will add unnecessary costs.
As indicated above, it’s not just the outsourcing provider’s
qualifications that must be carefully measured. Companies must evaluate
their own internal processes and improve them as needed to help an
enterprise application management partnership succeed.
Too often organizations focus only on the service provider’s
capabilities. Although this is a critical component of the overall
analysis, you can’t forget to look inward. Maximum value can be derived
from an outsourcing partnership when companies improve their internal
IT processes.
It has to be a win win working for both the parties involved. If one of the side plays like a big brother to the other and tries to squeeze things - no matter how well things were evaluated, critical parameters will change on the fly and friends can become foe in no time and it may head to lot of heart burn, stress and failure.
