For the CIOs, the Information Technology outsourci8ng as they know it is more than 15 years old that the service quality remains a big concern. The results of the 2011 IDG Enterprise Outsolurcing and Service Providers Survey bear that out while the 44 percent of the 1,176 Information Technology leaders. Their service level agreements were tighter than they were three years ago, they cited poor quality service as the top risk of information Technology outsourcing ahead of the security, loss of the internal knowledge and hidden costs. The Lax internal governance and an overreliance on contractual obligations may be to blame. When the Barr Snyderwine took over as CIO of the trade show and special events company Hargrove in 2009, he thought that he had a solid outsourcing strategy in a place a network management deal with a reputable provider, offshore and domestic application developments outsourcing and and a business process outsourcing agreements in India,
The BPO work was straightforward, the time difference occasionally posed a challenge but service was decent and the costs were low. Outsourced Information Technology was a different story, if the server is down they are responsive and they will have someone here in four hours, but it is still four hours and when someone leaves the provider, they left with a lack of knowledge of their network. Service quality has been variable on the application development front. When they are clear enough with their requirements, it was a never ending money pit.
They are woefully insufficient for managing outsourced service while strong SLAs may be adequate for some work. If they are buying a box or replacing a drive, the SLAs work great, but when they are outsourcing services it’s still all about people. In the outsourcing management, but the survey respondents did not give themselves especially a high grades. In just over a quarter rated their service delivery management and measurement practices as very effective while the 43 percent said that they were somewhat effective and 12 percent said that they were not effective at all, the mentality all too often. The service woes are not putting the brakes on the outsourcing, the 36 percent of the Information Technology leader plan to increase their use of the third party Information Technologies service in the next year. To manage variable staffing needs, the top drivers are access to skills not available in house, cost reduction and the ability to manage variable staffing needs. To do so, the snyderwine outsources to access a deeper skills set than he has in the house.