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Weaning yourself off service providers: A 12-step approach

Going in with an exit strategy and exploring alternatives can save money and promote self-sufficiency


You’ll also want an agreement that clearly defines the scope of the project, its goals and parameters, and how you’ll know when you’ve reached the end point, Harper says. Status meetings should be standard operating procedure. “The more you spell out at the beginning, the clearer the ending point becomes,” she notes.

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Step No. 10: Marshal your resources

You can reduce the need for outsourcing by using in-house resources more efficiently. But that means figuring out exactly how well your resources are being used.

“Your first step is to get your own house in order,” says Leyla Seka, director of marketing at Primavera for Services, a unit of project management software vendor Primavera. “Who do you have, what are they doing, what can they be doing, and how much do you want them to do? Once you figure that out, you can do smarter sourcing.”

Primavera for Services is a Web-based app that lets organizations track how much time each employee spends on each task. So instead of hiring a contract programmer, you could use Primavera for Services to identify in-house developers who haven’t got a lot on their plates, Seka says. In that way, you could gradually transfer work from an outside source to an inside one, without abruptly ending the relationship with your outsourcer.

Step No. 11: Ease off slowly

Companies that have outsourced most if not all of their IT maintenance, call centers, or software development may find it challenging to bring these functions back in-house. Besides the logistical issues involved in the transition, there are also political ones -- for example, you’ll probably need the outsourcers’ help at the same time you’re taking money out of their pockets, Gray notes.

Before engaging with any outsourcing firm, your organization should have a detailed transition plan that spells out how your outsourcer will hand over the reins. You should move deliberately and not wait until the relationship is beyond repair.

“You try to never burn bridges in business,” Seka says. “If you have an outsourcing situation that’s costing you a lot but not going very well, it’s always better to say ‘We’ve decided to take this project in-house’ rather than ‘You’re charging too much and we’re not using you anymore.’

“We’ve seen clients abruptly sever relationships with outsourcers who’ve found themselves having to go back later and get bids from the same people. It puts you in an awkward position.”

Step No. 12: Give yourself over to a higher power -- your employees

Outside consultants may appear to be more effective than your staff, but that’s usually because they’re focused on one project and don’t have to worry about supporting the entire IT infrastructure, says PRTM’s Todd Ackerman.

A better solution: Have your staff work side by side with the consultants so they can gain the knowledge to do it themselves. This in turn should be just one small part of a broader, all-encompassing IT strategy.

“Have a plan and work the plan,” Ackerman says. “Organizations that have a road map for developing their IT infrastructure are typically more effective in selecting, managing, and weaning themselves off dependence on third parties.”

Dan Tynan is contributing editor at InfoWorld.
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