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From: Subject: IndustryWeek: Printer Friendly Date: Wed, 17 Oct 2007 11:59:44 -0500 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0094_01C810B5.352B1500" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.3198 This is a multi-part message in MIME format. ------=_NextPart_000_0094_01C810B5.352B1500 Content-Type: text/html; charset="utf-8" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.industryweek.com/PrintArticle.aspx?ArticleID=15158 =EF=BB=BF IndustryWeek: Printer Friendly 3DIndustryWeek=20

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Home = : Leadershi= p &=20 Strategy : Best = Practices :=20 If Machiavelli Were an IT Manager...=20

If Machiavelli Were an IT=20 Manager...

Moving beyond the monolithic contract = to divide=20 and conquer outsourcing projects.=20

Thursday, = November 01,=20 2007
By Brad=20 Kenney

"Before all else, be armed." -- Niccolo = Machiavelli

The urge to go to a single-vendor IT outsourcing setup is = perfectly=20 understandable -- after all, fewer headaches from vendor juggling = and a=20 long, cozy, multiyear contract can offer some peace of mind for = those=20 navigating the ocean of stress that is IT management.

However, things don't always work out that neatly. In fact, = quite a few=20 companies (nearly 50% in one survey) are having to bring some = formerly=20 outsourced IT work back in-house, making for two periods of = business=20 process disruption -- often for the price of three or four.

"The era of sole sourcing has played out and the results have = not been=20 impressive," says dbaDirect CEO John Bostick, a longtime IT = industry=20 veteran with experience at companies ranging from services = startups to=20 IBM.

Bostick says that strategic management of a multi-sourced = operation=20 comes down to strong in-house project management skills. He = counsels=20 companies to keep experienced IT managers and teams in-house, as = they are=20 essential to managing what is essentially an alliance between = internal and=20 external resources. "In a good multisourced IT structure, all = operations=20 should report to a director of the alliance," says Bostick. This = "IT field=20 general" can serve as a liaison to the vendors involved in the=20 partnership.

Maintaining a strong, in-house presence will ensure that the = business=20 drivers maintain momentum.

The Art of IT = War

Maintain the strategic high ground. Companies should = outsource=20 activities that are not competitive differentiators or core=20 competencies; however, retaining and maintaining the = strategic=20 aspects of IT management and architectural design (as well = as the=20 people who understand and can manage them) is vital.

Divide and conquer. Increasing = dependence on one=20 vendor weakens the capacity to manage an outsourcer = actively. Hold=20 it in check and hold it accountable. There's safety in = numbers.

Know your strengths (and weaknesses) before = joining the=20 battle. Companies shouldn't expect positive = outcomes when=20 poorly defined processes are figuratively thrown over a wall = to an=20 outsourcer. Diligent process definition helps in setting the = objectives, milestones and metrics that must be met in order = to=20 ensure the outsourcer has delivered a successful = outcome.

Hit fast, and hit often. Quick wins from = limited=20 "transactional arrangements" are very important, as they = provide=20 rapid value to the organization. It's easier to obtain = near-term=20 success from well defined, straightforward and tightly = focused=20 relationships than from more expansive and all-encompassing=20 outsourcing partnerships.

Pick on someone your own size (or smaller).=20 Large, powerful outsourcers may start to lose the=20 incentives that can drive smaller, specialized outsourcers. = In=20 multisourcing environments, scale makes clarifying and = measuring=20 performance with multisourcing vendors easier. Plus, it's = less=20 costly to replace smaller vendors when expectations are not = being=20 met.

Source: John Bostick,=20 dbaDirect

See Also

F= orecasted=20 Wireless Growth -- 2007-2011: By The Numbers
G= reen=20 IT at a Premium
C= FOs=20 Cite Data Quality as Top Concern
N= ine=20 Steps Toward an HCM Software Implementation
M= ore=20 IT Issues Facing CFOs

=C2=A92007 IndustryWeek. All Rights=20 Reserved.

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