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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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