Why Actively Manage Your ITO Relationship?

One of the biggest mistakes you can make as a business leader is selecting an IT Outsourcing provider, signing a contract, and then never revisiting the terms of your agreement. It's easy to think of your ITO services as out of sight, out of mind, but the truth is that the managed services market is constantly changing as new advanced technologies become mainstream and it doesn't take long for your contract to become stale. You want to ensure you are getting the most out of your ITO provider and a good way to do that is to review your contract on an annual basis.

According to a recent ComputerWorld article by Stephanie Overby, "even a seemingly healthy IT outsourcing arrangement can benefit from an annual check-up to ensure that metrics are providing meaningful insight into performance, get an updated understanding of outsourced operations and how well they're running, and ensure that you're getting what you've paid for per the contract."

Many contracts contain technology-specific language that is foreign to a CFO or CEO -- in that case you should arrange a meeting with your provider and review the agreement together. You are paying for their services, and therefore they should be able to take the time to make sure you fully understand what those services are and how they are being actively managed.

"IT Outsourcing: Why It Pays to Appraise Your Contract" lists 18 recommendations to follow when you are reviewing your current contract. An annual review may uncover the need to compare your current vendor's services with additional competitors - or even the need to switch vendors altogether. Ultimately, the lesson learned is that your ITO contract should be actively managed in order to ensure your organization is receiving the best-in-class service and support.