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Is lack of ITIL based ITSM the reason why your previous outsourcing strategies have failed to deliver?


Why have previous outsourcing strategies not delivered for your organisation?

It's difficult to say for sure but the following checklist might help identify weaknesses in your strategy. Grab a coffee and benchmark your strategy against the following or better yet, make enough coffee for two and get together with Stoneseed for a thorough analysis.

If you've never outsourced before but are considering external service providers right now, the following will be good questions to ask as part of your benchmarking process.

1 - Did your mission match your machine, maturity and the market?

All too often outsourcing which sets out to simply cut costs fails to deliver based on organisational business strategy.

Stoneseed's ICT Rapid Assessment Programme is an immediate and rapid benchmarking of your ICT function against your corporate strategy, the ITIL maturity curve and peer organisations.

Stoneseed's ICT Rapid Assessment Programme also highlights immediate opportunities to reduce spend with existing providers in a steady state environment and advises on CSR policy.

2 - Did you define your business case?

What are the benefits that your organisation will yield from the investment of time and resources and how will you manage and measure that during the outsourcing lifecycle?

Stoneseed's Business Case Definition justifies the investment of time, money and resources into a project or contract by outlining the specific benefits that the project will bring to a business problem as it evolves and changes throughout the lifecycle of the project.

3 - Did you identify your starting position?

How well acquainted you are with your existing provision is key to determining the ultimate success of any outsourcing project. Identifying which is better aligned with your business need, vendor capabilities or your existing structure?

If you don't know what's already in your locker - how can you know what you need?

Stoneseed's IT Value and Benefit Assessment provides a gap analysis between the business objective and the current IT capability to support the objective, aligning service capability to business requirement.

4 - How much market research did you undertake?

Stoneseed's Outsourcing Feasibility identifies potential service gains and cost benefits with a pragmatic approach to outsourcing based on your goals.

5 - How closely did you manage your vendors, how accountable were they to your mission statement?

Signing off on a contract without a vendor governance structure in place is like leaving the money tap dripping. The real work in an outsourcing venture begins after the ink dries on the contract.

Stoneseed's ITIL based ITSMF develops a Service Management Framework, aligned to ITIL best practice but also designed to meet the operational and cultural requirements of your organisation.

6 - How did you measure your operational security?

Increasingly organisations entering into arrangements with external service providers are falling foul of security issues caused by lack of initial security assessment.

The problems tend to fall into a couple of categories but not exclusively.

i) Straightforward security breaches caused by sharing of sensitive operational information, systems access and intellectual property without appropriate assessment of security risk.

ii) Over policing outsourced arrangements based on perceived risks. Quite often firms who have outsourced IT, especially overseas are paranoid about potential security breaches to the extent that they deploy internal resources actually in excess of the cost of carrying out the original services in-house. You have to have your security locked down and be confident in it before you engage the vendor and then you have to trust your judgement. Of course, service level governance should monitor security but not to the point where it leaks value.

Stoneseed's Security Policy Assessment designs a network security policy that is feasible and practical, but crucially accounts for constantly changing threats and vulnerabilities.

7 - Was your vendor the best of class at the beginning, during and at the end of the outsourcing lifecycle and how flexible was the contract to ensure this?

An outsourcing project is like getting your car through its MOT. You drive out of the garage with a piece of paper that states the car is safe and fit to drive and you don't need to get another for a year. You drive out of the garage and hit a pot hole busting your suspension. You still have a clean bill of health for the car but it’s not fit for purpose. Thing is ... things change.

Ongoing maintenance is crucial to the value, efficiency and safety of your car and so it is with an outsourcing contract.

Stoneseed's Business Continuity Review assesses current and potential future risks, impact on business critical priorities, and policy definition.

This a broad brush survey but it might throw some light on why previous outsourcing has leaked value for your organisation. For a better picture let's get that coffee and put in place an IT outsourcing structure that serves your specific business need.

Contact us to learn more about how Stoneseed's IT Service Management can help you to improve the quality and reduce the cost of your ITSM.

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September 2019

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