Don’t miss hidden costs in insourcing…
Outsourcing isn’t always a walk in the park, but bringing services back in-house can be an uphill climb. To minimize the pain of an insourcing transition, the outsourcing advisory firm Pace Harmon recommends 10 critical considerations to bear in mind, according to Dennis McCafferty at CIO Insight.
Total cost of ownership: Don’t forget to evaluate monthly service charges, asset costs, project fees, early termination charges and other costs when considering moving outsourced services back in-house.
Contractual obligations: Find out what transition help the outsourcer is required to offer, such as data transfer.
Technical complexities: Figure out what impact the transition will have on your technology environment, including hardware platforms.
Schedule logistics: Set up a transition planning and execution schedule that takes into account unanticipated events, such as key staff quitting.
Technology infrastructure: Fill in the gaps between your existing infrastructure and the one needed to insource.
Space concerns: Don’t get caught without sufficient room for the hardware, infrastructure and employees needed.
HR resources: Make sure the HR folks are up to supporting the in-house migration with tasks like recruiting, training and management.
Transformation readiness: Get a good sense of competing IT and business projects and goals, and make sure you have adequate change-management resources in place.
Process maturity: Be sure that processes related to incident management, business continuity testing and other functions are ready for the transfer of knowledge.
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