YOU ARE NOW READING

Manage Outsourcing Relationships

Outsourcing.jpg

Outsourcing of IT function is like a marriage. Not a very happy marriage, though. It goes down more than it goes up. But I think once you get into a relationship, you become dependent on each other, unless you take a major decision to break away. 

I am yet to come across an outsourcing relationship which is one hundred percent happy. If there are no ups and downs, it means there is something missing somewhere. Either the demands are not coming or somebody is doing more than they should. If there is a demanding CIO or a cost-conscious, or process oriented outsourcing partner, there will be conflicts.

The SLAs (Service Level Agreement) and ARCs (Additional Resource Component) and RRCs (Reduced Resource Component) are extremely important. The baseline has to be very clearly defined. If you get into a relationship for outsourcing, you never stay at that stage, you grow. Your organization is growing that is why you are outsourcing. 

You have to look at how the relationship will develop as growth happens. If these things are put in place, it helps set a base tone, which can be managed. 

ABOUT THE CONTRIBUTOR

Dr Neena Pahuja is the CIO of Max Healthcare Group. ...

More about  Dr. Neena Pahuja

WHAT DO YOU THINK?