Outsourcing

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may decide to choose to seek assistance from an external
contractor/company to supply their services the organisation lacks. In addition,
the business competition has set the pace for an organisation to continue to
strive for internal efficiency. It also needs to look for a way to transfer non-
core activities or "in house" services and support activities to external
specialist organisations who can deliver quality services at a lower cost.

Fundamentals

In deciding whether to use outsourcing or not, the main objective of outsourcing
is based on the price of delivery of services by an external contractor/company.
Although price of delivery is a primary factor for outsourcing, other issues
should be considered e.g. price should be measured against the overall package
offered by the external contractor/company. Briefly if it's a good competitive
price in relation to the services rendered by the company and in respect to
their skills/competency and experience, and timely delivery. ...

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be prudent to incorporate an "extraordinary events"
clause into any contract entered into. This clause should cover any
extraordinary changes in circumstance that should occur . This also allows a lot
of flexibility between the two parties.

- The IT manager should identify all the external and internal stakeholders and
the impact that the outsourcing may have on stakeholders.

- Learn from other companies, use their mistakes and successes to avoid
duplication and waste of manpower.

- The IT manager should communicate regularly with anyone in the organisation
who is affected by outsourcing, even if the affect is very small.

- The IT manager should make sure that the external service ...

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