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IT Metrics - What about Outsourcing



The relationship model to be establish between IT and the rest of the business is one of the first governance key decisions that has to be defined by the CIO once there is a clear IT strategy agreed with the rest of the Management Board members. 

The CIO has to work in a close collaboration with the other C-members in order to agree on the best IT relationship strategy model we want for the company. Whether we go for a more internal one (full partnership) or for an external one (Outsourcing) we have to make clear that this position in the model regarding the preferred relationship might change along the way as a result of the maturity degree you can establish with the rest of the business, foreseen opportunities, business challenges, etc.

As a result of that decision, a full Outsourcing model for some of the IT processes and services or for the whole portfolio can be explored and implemented in order to fulfil both, business and the IT strategy. There is however something I always recommend, which is to keep some of the key IT skills and processes, such project portfolio, strategy definition, business partnering, etc. out of the outsourcing equation. This is because there is often a need for a balance model looking at getting financial benefits from contractual agreements with vendors at the same time that we reach a high degree of professionalism and business orientation driving the IT agenda. 

 As I think will be clear by reading the proposed model, there are different ways to manage this relationship depending in which quadrant of the model you and your company decide to stay on. This relationship governance will have also implications in both, the management of the selected strategic vendors but also the other areas of the business. As this is not a simple decision every company has to look for their own solution. The CIO is undoubtedly the one that will have to drive this discussion going forward.  

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