Strategic IT Sourcing

IT organizations must prepare their sourcing project in detail in order to successfully implement it. This begins in the feasibility phase. Here we develop a business case, define success criteria, analyze risks and describe performance relationships. In this phase we make you "ready-for-sourcing" for your IT services and answer the following questions:

• What are the risks for your organization and how do you reduce the risks?

• How can you measure the success of your sourcing transformation?

• Are the departments involved prepared for the topic?

• How can you control service providers in a transparent and goal-oriented manner? 

• How effective and efficient is your currently purchased IT service?

• Do you also achieve desired advantages with current service providers?

• Does the business case make economic sense?

The scope is insufficiently described in more than 60 percent of all sourcing procedures. As a result, the offers submitted are too scattered and difficult to compare. The selection of the provider and the drafting of the contract are then difficult. At the "tender/contract" level, we create tender documents with you, select bidders, prepare and accompany the due diligence, develop negotiation strategies with you and support you in contract negotiations. The focus is on the following questions:

• Are your requirements realistic and accurate?

• Which providers meet the needs of your organization?

• How do you speed up the tendering process?

• How do you bring about improvements in the sourcing relationship from the start? 

• How do you strengthen your negotiating position so that you get better conditions?

In 95 percent of all transition projects, IT system buyers and IT system providers alike have expenses that exceed the originally planned time and financial budgets. On both sides, the most common reasons for this are a lack of experience and insufficient resources when preparing and implementing the topic. The transition phase is therefore primarily about providing appropriate resources for the changes, establishing a governance framework, supporting employee transitions and updating the business case. The following questions are relevant for this:

• How do you plan employee and asset transitions to IT service providers?

• How do you ensure optimal knowledge transfer to the provider?

• How do you manage to manage the IT service provider from the start?

• How do you ensure your business operations during the changes? 

• How do you seamlessly connect outsourced processes with your internal workflows?

The decision-makers are only very satisfied with their outsourcing in 14 percent of the outsourcing projects. That is why the transformation optimization phase is primarily about making the long-term goals and optimizations that were defined at the beginning a reality. Only in this way can the sourcing relationship be successful for the customer and the service provider in the long term. In this context, we will answer questions like these with you:

• How can you tell whether the IT sourcing model – measured against the previously defined goals – is working?

• Is the original business case still relevant or does it need to be changed?

• Are the motives for the existing IT sourcing model regularly reviewed and alternatives analysed?

• How can you improve your model of quality, performance and supplier relationship management? 

In only 58 percent of all IT sourcing contracts, the IT department reviews the IT sourcing strategy at the end of the contract in order to possibly change it and/or terminate the IT sourcing contract. 25 percent of the contracts are unchecked and automatically renewed. For 17 percent, there is generally a new tender. In order to optimize follow-up contracts, we now answer questions like these with you as a customer:

• Are the costs of your previous provider justified or should they be reduced?

• To what extent has the previous IT sourcing strategy achieved your original goals?

• How can you optimize your contractual relationship with the provider and what are the reasons for dissatisfaction?

• What options for action are there and which should you implement? 

• Under what conditions should the contract be extended and how should a contract end be prepared?

• How should you plan the transition to a new provider?