Ten Considerations for CIOs Seeking to Insource

By Dennis McCafferty  |  Posted 05-31-2013
Print this article   Print this article
Ten Considerations for CIOs Seeking to Insource

Total Cost of Ownership  Analyze and evaluate the full range of monthly service charges, project fees, asset costs, early termination penalties, etc., to assess whether the decision makes bottom-line sense.

Many organizations are now looking to transition outsourced assets and functions to an in-house model. CIOs, of course, are frequently in the loop here because many of these initiatives involve IT. So why are companies making this move? For starters, outsourcing transactions typically take 23 to 46 weeks to complete, according to research from Deloitte. Too often, the hired vendor underestimates the required scope. As a result, nearly half of managers say they’ve had to end an outsourcing contract, citing reasons such as a lack of service quality, subject-matter expertise, communications, account management and affordability. But there’s always a transition—sometimes painful—that follows the termination of an existing, outsourced relationship. With this in mind, Pace Harmon has come up with the following 10 top considerations for an insourcing business case, which are part of an Are You Ready for Insourcing? advisory report. Such decisions should always be based upon thorough analysis and planning, the company reports. In many cases, you may conclude that you’ve plotted out every “what if?” —only to get caught off-guard when the unexpected emerges. Pace Harmon is an outsourcing advisory services firm.

Dennis McCafferty is a freelance writer for Baseline Magazine.


Submit a Comment

Loading Comments...