Outsourcing part or all of IT operations continues to grow in popularity among top business executives. However, successfully executing an outsourcing contract can be challenging.
Outsourcing partnerships can fail for many reasons including 1) a poorly-defined vendor selection process, 2) a weak implementation methodology, 3) the absence of well-defined service level agreements (SLA), 4) the inability of top IT leadership to effectively manage the outsourcing relationship, 5) the failure to confront minor issues before they become major problems and 5) poor leadership and communication skills in general.
Any combination of these can quickly lead to missed expectations, finger-pointing, conflict, a damaged partnership and litigation.
The good news is that outsourcing relationships can typically be remediated. Drawing upon years of experience in selling outsourced IT services as well as contracting for those services as CIOs and IT leaders, CTCi consultants facilitate the remediation of outsourcing partnerships through an informal arbitration process. The result is a “win-win” resolution that may include 1) a review of new business requirements, 2) the renegotiation of service level agreements (SLA), 3) the modification of terms and conditions and 4) the development of a new communication plan.
The great news is that when both parties agree to an informal arbitration process and implement the recommendations, they can avoid unnecessary legal fees and the costs associated with a new vendor selection and implementation process. The only parties that lose . . . are the lawyers.