We would venture that most organizations' first IT outsourcing experience involves engaging an external supplier for application development or package customization and implementation.
In truth, companies have been outsourcing ever since IT became a profession—by hiring consultants. Whether comprising a single resource or a team from the Big Four, whether on-site, near-shore, or off-shore, engagements have a much better chance for success following a proven process.
Following is an example of how sourcing engages at various stages of a project. We've highlighted primary responsibility. We delve into associated workflow in the page following, and discuss the process and artifacts in more detail in our supplier lifecycle section.
|Stages of Engagement|
|Executive/ Sponsor||Project Manager||▼||IT Sourcing||PMO|
|Approve, Fund||►||Create||►||Business Case||►||Involve when considering outsourcing||◄||Advise|
|Approve||►||Create||►||Program Charter||►||Involve when considering outsourcing||◄||Advise|
|When engaging an external supplier...|
|Own||►||Manage||►||Project Initiation||◄||Advise, Facilitate||◄||Strategic initiative oversight|
|Approve||►||Input to and/or Create||►||RFP||◄||Create, Manage process||◄||Advise, Oversight|
|Select, Approve||►||Select||►||Supplier Selection||◄||Advise, Facilitate||◄||Advise, Oversight|
|Approve||►||Create in conjunction with Supplier||►||MSA, Statement of Work||◄||Assist, Coordinate (Legal, Finance, etc.)||◄||Advise, Oversight|
|Relationship, Programs||►||Programs, Projects||►||Governance||◄||Manage governance process||◄||Advise, Oversight|
|Logistics of escalation depend on problem severity level...|
|Management Escalation||►||Initiate with Supplier||►||Escalation||◄||Faciliate and Follow up||◄||Advise, Oversight|