subject: IT Outsourcing - 10 Questions to Answer Before Vendor Selection Process [print this page] IT Outsourcing - 10 Questions to Answer Before Vendor Selection Process
In IT outsourcing, having the right vendor helps you create success with lot less cost, time and effort than would be necessary otherwise. Managing vendor selection is a complex process that needs structured management. Before you go ahead with the vendor selection process, you must define a clear objective, a strategy for evaluating potential vendors and a set of requirements. Here are a few questions you need to answer before you begin RFP and vendor selection:
What is your objective in outsourcing?
How and when are you going to collect and define the project requirements?
Do you have large data volumes or multiple applications where you can think of multi-vendor outsourcing?
What are your criteria for vendor evaluation?
What technology platforms and tools are you going to use?
What is the methodology for execution of the project? Have you checked best practices in the industry?
What skills are needed in-house to retain control?
What are the roles, responsibilities and personnel in your organization who will participate in the outsourcing engagement?
If you are outsourcing support services, have you benchmarked your current in-house services? Have you collected and analyzed your current performance data?
What are your compliance requirements and security considerations?
If you are a small or medium-sized business, answering these questions may be relatively less exhaustive. However, having a small strategy document that contains technology preferences, in-house skills, selection criteria and a timeline will point you in the right direction from the beginning.
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