Advantages Of Information Technology
And The Suppliers Who Make IT Happen

First, A Quick Review

Let's start our coverage of the advantages of information technology with a quick review of some basic points related to selecting outsourcing suppliers.

• Investing in IT services enables your organization to quickly obtain the benefits of information technology without having to make large investments in (purchasing, installing, training, operating and staffing) technology.
• Companies "purchase" IT services instead of having to own their IT infrastructure, so they can take advantage of the latest information technology, which enables them to focus their priorities on their core business.
• Businesses looking to become competitive on a global basis look into the best information technology (IT Services) around the world.
• Many companies prefer to select local IT service providers because they find it easier to incorporate IT into their business.

This said, your organization needs a way to predict the effectiveness of potential service providers that will be performing critical business services on your behalf.

You have high expectations for improved business performance. Now, even though you plan to reduce costs, you'll still be investing a great deal of money. You need a way to be sure you're selecting the right services provider.

Could This Measurement Tool Help?

Accenture and Carnegie Mellon University have developed a standard approach to evaluate providers of information-technology-enabled outsourcing services. It's called eSourcing Capability Model for service Providers (eSCM-SP).

The eSCM-SP tool reveals the advantages of information technology when brought about by a value oriented selection of an IT supplier. Here are some of the areas covered by this model:

1. Contract negotiations.
2. Transition of resources and reverse transition at contract completion.
3. Methods of buyers to appraise the capabilities of outsourcers.
4. A level structure taking into account changes in business needs over the life of the contact.

To differentiate themselves from the competition, outsourcing providers can and should use eSCM-SP tool to appraise and improve their abilities to really deliver the advantages of information technology.

Your organization would use this model to evaluate outsourcing providers according to their level of certification based on these five organizational elements:

1. Organizational Management. This includes defining objectives, setting expectations, planning improvements, establishing performance measures, and defining systems and procedures.
2. People. What are the skills and competencies of the people you'll be dealing with, and how well do they facilitate the functions of individuals and teams?
3. Business Operations. How well do they set up, implement and deliver their services, manage service levels and monitor their performance?
4. Technology. How well do they integrate information technology to satisfy client business needs, monitor its performance, and plan technology improvements?
5. Knowledge Management. How well maintained are its organizational assets?

The pilot project for using this model demonstrated:

• The level of communication and trust that develops between the outsourcer and client.
• The importance of identifying and monitoring improvements.
• The importance of having individuals involved in contract negotiations upfront.

The Next Steps

1. Want to gain access to this model and learn more about realizing the advantages of information technology through proper supplier selection? Visit Carnegie Mellon University's IT Services Qualification Center (ITSqc) Web site for details.
2. Do you require more information to help you evaluate outsourcing providers? Please visit our "What is information technology?" page.
3. Service Level Agreements have been mentioned several times throughout this website, and in fact, they're extremely important. Sadly, many executives don't know a lot about what they should contain and what some of the best practices are. We can help top off your knowledge in this area by providing you with the following:
   • An overview of the IT Service Level Agreement (SLA) and some excellent resources for more detailed information on SLAs and an SLA Toolkit.
   • What's inside a Service Level Agreement and where to gain access to a Service Level Agreement template.
4. Further reading in the form of two industry standard books on managing IT project outsourcing. Read on for details.

How To Get Help

First of all, you'll find that while the site information is exhaustive, it appears in a brief, easy-to-read, often bulleted, executive style.

You won't get bogged down in details while browsing this site, but we DO have extensive in-depth information for you if you want or need it. It's free and all you have to do is ask!

Start right now by going to the Contact Us page and complete the simple online form. You'll receive immediate access to two authoritative industry books, which our site sponsor will mail to you at no cost.

As a thank you for participating in our site, you'll also receive a bonus download of "15 Interview Questions To Ask IT Outsourcing Providers".

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