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, FundCreateBusiness CaseInvolve when considering outsourcingAdvise
ApproveCreateProgram CharterInvolve when considering outsourcingAdvise
When engaging an external supplier...
OwnManageProject InitiationAdvise, FacilitateStrategic initiative oversight
ApproveInput to and/or CreateRFPCreate, Manage processAdvise, Oversight
Select, ApproveSelectSupplier SelectionAdvise, FacilitateAdvise, Oversight
ApproveCreate in conjunction with SupplierMSA, Statement of WorkAssist, Coordinate (Legal, Finance, etc.)Advise, Oversight
Relationship, ProgramsPrograms, ProjectsGovernanceManage governance processAdvise, Oversight
Logistics of escalation depend on problem severity level...
Management EscalationInitiate with SupplierEscalationFaciliate and Follow upAdvise, Oversight

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