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In our today’s post we continue to give tips for successful re-sourcing of IT deals:
6. Prepare for People Problems. The outsourcing deal you signed may limit your right to solicit and re-hire provider personnel or make it difficult for the new provider’s employees to shadow or conduct other knowledge transfer work with the incumbent’s people, says Andrews of Thompson & Knight.
7. Select the Right Silo. “Towers where an incumbent outsource provider has included labor, hardware and software as part of the service offering will be much more complex to transition to another service provider than that same tower being provided under a labor-only model,” says Pace Harmon’s Martin.
8. Calculate the Cost of Disruption. There will be a price to pay for moving the work to a new provider so figure out what it is before first. “Do your homework,” Lepeak says. “Understand the risks, costs and the level and nature of the likely disruption, and weigh that against the benefits of the transition.”
9. Master Multisourcing. Most of today’s resourcing work involves a partial transfer of outsourced functions resulting in a multi-provider environment, says Andrews. Coordinating multiple providers takes time and effort. Andrews advises that new contracts address some of those challenges including cooperation among providers, customer consent and approval requirements, and common access or usage rights to software or other proprietary materials.
10. Make it Easier on Yourself Next Time. You’ve consulted the contract, calculated the costs, and made the decision to recomplete. When it comes time to sign on the dotted line with the new provider, apply what you’ve learned. “The outcome of a re-sourcing often depends on leverage,” says Andrews. “Make sure you have some in the new contract.”