Information Technology Sourcing Best Practices Guide


IT sourcing best practices provides guidance to IT managers in planning and managing IT sourcing activities. The best practices covers the sourcing models applied currently for sourcing in IT taking into account local needs and requirements.
Sourcing is to get something such as service or product from a provider. Outsourcing is to get something from an outside provider, while In-sourcing is to get something internally, from an inside provider. Everything in an enterprise can be outsourced except the core business processes.
The reason for sourcing is to gain a competitive advantage in an accelerating business world.
Some of these drivers are:

  • Meeting a business need in term of time, cost, efficiency and effectiveness
  • Change business or organization
  • Change service provider
  • Have access to technology or expertise that are not available internally
  • Minimize risk by transferring or sharing
  • Improve focus on the core business
  • Improve cost control

Sourcing can be done in many different ways some of them are Traditional, Co-sourcing, Multisourcing, Alliance, Joint venture and In-sourcing. Selecting which way to source depends on the situation, goals and objectives behind the decision. 
There are two parts associated with the sourcing model and they are Ongoing Sourcing Management and Sourcing Life Cycle. These two are essential in planning and monitoring how the sourcing process is handled. The Ongoing Sourcing Management and Sourcing Life Cycle address everything from analyzing the sourcing project to completion.
Some of the best practices that made the sourcing process a success are:

  • Implement a sourcing model and source governance
  • Build a business-aligned sourcing strategy
  • Choose the right service provider
  • Build a strong, accurate and valuable contract
  • Establish long-term relationships with service providers that is build on trust and confidence
  • Manage organizational change
  • Ensure skills
  • Manage sourcing risks
  • Manage change of sourcing environment
  • Measure and evaluate performance

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