July 4, 2024 - Key success factors in IT sourcing: How to achieve smooth transition and transformation

Key Success Factors in IT Sourcing

Challenges in the T&T Phase

Many companies underestimate the resources needed during the T&T phase. This often leads to delays and additional costs because internal requirements are not met. Therefore, it is crucial to define the required customer inputs in the contract clearly to avoid misunderstandings.

Mechanisms to Protect the Customer

It is essential to develop mechanisms that protect the customer. This includes the precise specification of required resources and roles. This enables a more accurate assessment of the necessary investments during the T&T phase.

Cultural Differences Among Providers

Different providers have various approaches to customer involvement. North American providers tend to involve the customer heavily, while Indian providers often foresee minimal customer involvement. Both approaches affect the T&T phase and can lead to over- or underestimation of customer requirements.

Active Management of the T&T Phase

Customers should actively manage the assumptions for the T&T phase before signing the contract. This includes defining who delivers what and when, and how the customer's additional work is accounted for. Tight schedules should be reviewed and adjusted if necessary to avoid overwhelming IT organizations.

Conclusion

Customers must actively manage the sourcing phases in their own interest to avoid being caught between the interests of providers. Successful IT sourcing requires clear definition and active management of requirements and resources during the T&T phase. By paying attention to these key factors, you can ensure a smooth and successful transition and transformation in your IT sourcing projects.