Page 76 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes 4.5.2 Evaluating and Selecting Appropriate Activities and Projects for
Outsourcing

Many outsourcing projects have failed to meet expectations, especially when work was relocated
simply to cut labour costs or to clean up a poorly performing operation. Generally, shifting
seriously flawed operations to a less expensive organisation does not solve fundamental
problems.

!
Caution An organisation must carefully consider which process and projects it should
assign for outsourcing.

Figure 4.1: Multi-step Processes for Successful Outsourcing
Establish Smart
Sourcing Strategy

Evaluate and Select
Appropriate Activities and
Projects for Outsourcing

Evaluate and select
Appropriate Service
Providers

Evaluate Service
Provider Locations

Benchmark Existing
Services

Develop Outsourcing
Contract

Establish Outsourcing
Governance Process

Measure and Evaluate Results
to Provide Data to Improve
Outsourcing Process

Source: http://ebooks.narotama.ac.id/files/Information%20Technology%20for%20Managers/Chapter%
204%20Business%20Process%20And%20IT%20Outsourcing.pdf

70 LOVELY PROFESSIONAL UNIVERSITY