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Outsourcing gone wrongWhy it goes wrong
There's often too much focus on the contracted goals rather than operational needs, so service declines. Hidden management overheads are not considered. There's not enough thought about the upside for the outsourcer - where will they make their profits? Outsourcing a problem without planning a solution - it'll be a different set of people stuck with the same challenges.
People resist change, if expectations are not defined and understood by the customer base you'll fail. They want great service and help. How long will transition take, when might you see improvements? How do you ensure service doesn't dip during transition? Will processes change? Will the selected team fit within your culture and processes? Will TUPE'd staff be faced with new ways of working? Is valuable knowledge going to be lost with those who choose not to be TUPE'd?
Global deals
Complexities are compounded when multiple outsourcers are retained, they'll all be aiming to maximise their profits. Have you mapped out the processes of helpdesk to applications, of applications to infrastructure and support to operations? Will you include the outsourcers in the management team? Offshoring presents additional challenges, are processes, culture and timing compatible - can you find common ground?
Fees
Pyramid deals are notorious for delayed payments and in-fighting between suppliers and it's the client that suffers. Everyone must understand how the SLAs work and nobody can work in isolation - they have to be joined-up for outsourcing to succeed.
How to succeed
Design an end-to-end operating model that the business understands and agrees to - especially the economics. Define clear segmentation and service offerings. Clearly state the governance rules for suppliers and the retained IT, identify the boundaries. Specify who supplies the glue to fill the gaps. Focus heavily on culture and behaviours. Have a clear set of common processes, IT tools, and consistent measurement. Talk to those who've succeeded and can advise you. It's the up-front thought that counts and remember, one size will never fit all, but there has to be a "win-win" for all, if all are to flourish.