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Managing IT outsourcing Essay

Category: Logic & Programming Pages: 9 Type: Essay Level: Master
They need to understand the systems that support the back office processes as well as having experience in managing complex systems environments, running and supporting hardware and developing systems, including web enabling. At this stage, it is also important to consider whether the Outsourcing partner can ensure network connectivity in a secure environment that permits data integration" (Medas pp 10 2006).
The next step in the process of managing IT outsourcing is to agree on a commercial framework. This allows the involved parties to agree on the provisions of service, and should compromise "Details such as fixed costs, unit pricing and the level of investment could all be defined in the commercial framework" (Medas p 11 2006). Lastly, the IT manager wants to develop a transitional plan that establishes the business process and features. This includes:
A review of the current systems, processes and organisational structure -identifying which systems are to be transferred (Medas p 11 2006).
Definition of services to be provided (Medas p 11 2006).
Agree the definition of service levels in terms of Service Level Measures (SLM) and Service Level Agreements (SLA) (Medas p 11 2006).
How employees will be affected by the transition e.g. how many staff and what types of jobs will be transferred, where they will be located, how they will be dealt with in terms of motivation and ongoing training and development (Medas p 11 2006).
How the process of staff transferral will be managed (TUPE) and what changes, if any, are to be made to the retained organisation - and how this will be communicated to all those involved (Medas p 11 2006).
The stages of the transition - and the timeframe involved (Medas p 11 2006).
Agree and finalise the contractual terms of the arrangement