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Topics to Understand in Outsourcing

The articles below are intended to enhance your understanding of the nuances of Application Outsourcing and the factors that can make this model difficult to implement for the inexperienced.

We will continue to build on this library and are open to requests for topics.

Managed Services vs. Capacity Services

Do you truly understand what a managed services agreement with a vendor means?

The vendor signs up for significant accountabilities in service performance and it is critical that the client operates in a manner that provides them the "space" to take charge.

 

This article is intended to articulate the responsibilities of the client and vendor and draws distinction between managed service and staff augmentation models.   

Managed Service vs. Capacity Services
Managed Service Considerations

The Impact of Implementing a Managed Service Model

Adoption of a Managed Service delivery model will cause disruption within the organization. This article is intended to provide insights into how both IT employees and your business partners might react to the outsourcing of IT. 

If you are in the planning phase or even in the middle of transition, it is not too late to consider the change management aspects of the migration. 

Service Performance Structures:  SLAs & KPIs

The SLA structure is one of the most unique and complex aspects of an outsourcing engagement. While you will have experienced operational measures within an internal IT organization, the complexities around managing IT performance under an SLA and KPI structure is very different.

 

The Service Level Agreement (SLA) is the basis of understanding between the vendor and client regarding the scope of services to be performed and the quality that is being committed to.

We will break the discussion down into three sections based on the level of complexity of the topics.

  • Foundation:  those basic factors that will get you started in being able to understand how service performance is measured in an outsourcing engagement

  • Intermediate:  more advanced topics that will be required if you are going to manage a vendor that is performing services

  • Advanced:  topics that are going to be points of negotiation during the contracting phase or will be used in dispute resolution when there are issues regarding the quality of a vendor’s performance

Measures SLA & KPIs 2.jpg

Upcoming Articles

Outsourcing Design Topics:

  • Retained vs. sourced considerations

  • Resource strategy and employee roadmap creation

  • Organization and operating model design

  • Service performance structures: SLAs and KPIs

Delivery Topics:

  • Performance recovery in a Managed Service engagement

  • Innovation in Outsourcing Agreements

  • How technology can support business accelerations

  • Critical factors required to unlock the value of Agile

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