It Outsourcing Analysis

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IT Outsourcing Analysis

Welcome to the IT Outsourcing Analysis lens. This is the second in a series of lenses designed to provide information in the complex area of IT Outsourcing. Please visit Information Technology Outsourcing for a discussion on the basics of IT Outsourcing.

IT Outsourcing Analysis 

An IT Outsourcing Analysis requires specialized expertise from technical, financial and sourcing professionals. The starting point is a deep dive discovery process including financial and technical baseline development, a gap analysis, and development of future state requirements. Properly built baseline models will support a comparable analysis of a full variety of sourcing options.

Once the initial discovery and baselining exercise is complete there are numerous alternative you may evaluate.

Performing IT In-House
IT Single Vendor Outsourcing
IT Multi-Vendor Outsourcing


The high level solutioning process matches client requirements to the best internal, market and combination alternatives. A comprehensive business case and migration plan supports the final, ready-to-implement recommendation.

Baseline Development Initial Considerations
-Review current state solution for all contexts:
-Strategic (original and revised objectives)
-Financial (budgets)
-Technical (original requirements)
-Service history (current supplier performance)
-Relationships (governance)
-Develop status quo financial model
-Document current environment
-Identify immediate improvement opportunities

Requirements and Solutioning
-Review new commodity/service requirements
-Review activities already conducted/existing artifacts
-Identify both market and available internal solutions
-Select qualified suppliers to participate in solutioning/RFP
-Interview suppliers regarding solutioning process

Recommendation/Report
-Create financial models of alternatives
-Document solution scenarios
-Identify recommended alternative
-Business Case and Approvals
-Prepare business case for recommended alternative
-Migration and Transition

At this stage you should have preliminary alternatives identified and modeled and be ready for the vendor selection process and further outsourcing analysis. You should also be in a position where the supporting models can be modified to account for differences in planned assumptions and vendor responses.

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Co-Author Diane Carco, CEO Swingtide IT Optimization Consulting Diane Carco

Real Solutions To Real Problems 

Free 30 Minute Phone Consultation

We are trying something new for the month of June only. Schedule a no cost, no pressure 30 minute conference call to address you biggest concerns or issues. We can help you to validate modeling assumptions, identify potential pitfalls, provide must haves when signing an outsourcing deal and more.
Swingtide Outsourcing / Insourcing Analysis
Swingtide Consulting is different from higher profile firms in the way we approach Outsourcing Transactions and in the level of resources we provide. We combine technical, financial and sourcing experts who have worked together on many deals as a team. All of our consultants have a minimum of 10 years experience in roles ranging from Fortune 100 IT Management, Outsourcing Provider Management, and Outsourcing Advisors.

by jbauder

Jay is the web owner of mutiple onlne sites that specialize in helping consumers find information and resources on the internet. 

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