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One aspect of outsourcing that can be particularly tricky for middle market companies is the capture and documentation of their requirements.

There may be a lack of maturity in the processes already in place. Knowledge transfer can be tricky, since much of the business intelligence may reside only in the minds of the company’s IT staff (which, for obvious reasons, may be skeptical about the prospects of outsourcing).

Finally, analyzing the benefits of an outsourced arrangement can be hard. Many mid-market executives think it’s as easy as looking at the salaries of the employees you’d have to hire to do the same function when in fact that are several other factors to consider, including capital investment in assets, the service levels that will be maintained, and so forth, says analyst Mika Krammer of Stamford, Ct.-based Gartner.

For these reasons, some mid-market CIOs seek the help of sourcing advisors. Highlights for Children used one when penning its deal with Verizon. They can help the company not only figure out the benefits of outsourcing, but offer help with sealing the deal and managing the relationship.

Large enterprises often have hired hands skilled in technology negotiation to make sure they get a good deal. A sourcing advisor can play that role for smaller companies and also help the mid-market executive create a plan for managing the outsourcing arrangement during the critical transition time and beyond.

 

 
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