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How
To Bring IT Back Inhouse
By Dennis Sommer (www.dennissommer.com)
Having troubles with your outsourcing firm? Thinking about
bringing these services back in-house? This article looks
at key steps that must be taken to determine if you are
ready and able to breakaway from your outsourcing firm
and what must be done for a successful insourcing transition.
Find "The Problem
Area"
Figure out why the outsourcing services are not working
today. Look at the customer satisfaction survey results,
analyze how the outsourcing services are managed. Review
as much information as possible to determine the root
cause or causes of the problem.
Service
Level Agreement
Look for evidence that the service levels are not meeting
customer expectations. Review the service level metric
data provided by the outsourcing firm and then analyze
your own service level data. Determine where service levels
are falling short and what actions are being taken to
meet customer expectations.
Negotiate
Negotiations are a daily practice for outsourcing firms.
They expect renegotiation during the life of a contract.
Due to the slow economy, these service companies are struggling
and more than ever willing to give more away to satisfy
their customers.
The
Fine Print
If negotiations fail to fix the problem areas or service
levels, check the fine print of your contract. If the
firm is not willing to come to the table, find someone
who has experience fixing bad contract deals.
Evaluate Insourcing
Develop a business case and cost analysis for doing the
work in-house. Review the current in-house skills, define
the complete list of skills required, and finally create
a skills gap assessment. The primary focus must be on
meeting the service level requirements of the company.
Pilot First
Top management's first question will be "Can your
department handle the work and meet the service level
expectations". To show your departments readiness,
implement a pilot project to show that your team can meet
or beat expectations.
Staffing
Moving from outsourcing to insourcing can be tricky when
dealing with the current staff. Getting your current in-house
staff on board with the new strategy and hiring some of
the outsourcing staff will be a challenge. Honesty is
the key success factor. Be up front about possibilities
in the new arrangement.
Manage
In-House Departments Like an Outsourcing Firm
The experiences learned from outsourcing in the past can
make your department more successful. Collect and evaluate
the service level metrics. Resolve past problem areas.
Implement a Program Management Office (PMO) to monitor
and mentor project teams in trouble. Communicate clearly
and often with primary customers and sponsors.
About The Author
- Dennis Sommer
 Dennis
Sommer is the founder and CEO of Executive Business Advisers,
a management consulting firm helping senior executives
maximize both sales and profit growth. Dennis specializes
in strategic planning, sales, marketing and operations
performance improvement.
Dennis is a highly
sought after author, keynote and seminar speaker on
sales, leadership and business best practices.
Contact Dennis at www.executivebusinessadvisers.com
or www.dennissommer.com
.
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