Common Reasons for IT Outsourcing Problems

Outsourcing IT functions can help a business focus on what it does well, save money on operational costs, and gain expertise it may not be able to find from an in-house IT Department. But some businesses try this approach without success. Understanding some common reasons for IT outsourcing problems can help businesses steer clear of pitfalls and have a more pleasant, efficient experience.

The Complexity of IT Outsourcing

There are a lot of variables when it comes to outsourcing IT functions. With these variables comes complexity at multiple levels between your business and your managed IT provider. Success requires mutual understanding and clear communication when it comes to decision-making and management of various IT functions. Often collaboration and precision are needed to achieve your IT goals. Below are many of the most common reasons for IT outsourcing problems and strategies to avoid these problems.

Misaligned Expectations and Objectives

Perhaps the number one problem with outsourcing IT functions the managed service provider and your company not being aligned on expectations or objectives. Are you expecting next level innovations and high tech solutions, but your service provider is stuck in 2010? Maybe you just want the basics to get the job done, but your It provider is constantly pushing flashy, expensive hardware or software.

Solution

Communicate your expectations during initial discussions with any potential IT provider. Only agree to clear service level agreements (SLAs). Have frequent check-ins, especially after starting with a new MSP, and talk about progress towards goals and measurable metrics so that you know you are on track for success.

Inadequate Vendor Selection Process

Another leading cause of IT outsourcing problems is picking the wrong IT partner. You could be making a mistake if you are focused only on cost, if you’re in a time crunch to make a move, or if you feel you don’t have the bandwidth to look into client testimonials, references, or proven track record of the IT partners you’re considering.

Solution

Create a strategic vendor vetting process that demonstrates due diligence, evaluation of technical capabilities, and consideration of cultural compatibility. By all means, consider cost, but also evaluate the long-term value that a vendor can provide to your company.

Lack of Effective Communication

A lack of communication can be extremely frustrating and can quickly lead to a breakdown of trust. Without trust and collaboration, it’s difficult for projects to meet desired standards for quality or timing. Time zone differences, language barriers, competing priorities, and cultural misunderstandings can all have a negative impact on effective communication.

Solution

Work with your managed service provider to develop a clear communication protocol. It should encompass regular updates, sharing pertinent information, and structured meetings. Be sure to use technology to aid in communication between your company team and your IT provider for a more collaborative approach.

Inflexibility and Resistance to Change

IT outsourcing will require change. Inflexibility and resistance to change can come from you company as the client, or it can come from your IT service vendor. Resistance to, instead of adapting to, new processes or technologies can hinder your growth and become a problem in outsourcing.

Solution

Create a culture of flexibility and continuous improvement. This type of mindset can help both sides respond more effectively. Be open to new ideas and be willing to make adjustments along the way. Consider including change management processes as part of your outsourcing agreement for greater progress towards your goals.

Insufficient Oversight and Control

A lack of proper oversight is another common reason for IT outsourcing problems. If there isn’t effective management or oversight, it’s much more likely that work quality could decrease, deadlines could be missed, and project scope could expand unnecessarily. But clear accountability and regular check-ins will help prevent surprises.

Solution

Establish a strong framework for governance. The key is consistent oversight, but without micromanagement, of the IT service provider. Utilize metrics and KPIs to monitor quality and progress.

Failing to Plan for Transition and Continuity

When you transition your IT services to an IT outsourcing partner, there are a lot of moving parts. If there is not a plan for the transition, you can lose business continuity and experience disruptions in your services. As the old adage goes, failing to plan is planning to fail.

Solution

Build a transition plan that covers items like transfer of knowledge, adaptation, and continuity measures. Make sure that both your company, as the client, and the managed service provider are involved in the transition. Set up check-ins before, during, and after the transition to stay on target towards your goals.

Conclusion

While there may be lots of different reasons for IT outsourcing problems, awareness and proactive measures can increase your odds of success. When you understand and address these challenges, you will find that the benefits of IT outsourcing are worth the extra effort to be prepared going in. From cost savings, to specialized expertise, to more opportunity for you to focus on what your business does best, you will enjoy IT outsourcing done right.

For businesses looking to step into the world of IT outsourcing, professional guidance can make all the difference. At OAC Technology, we make IT simple. Contact OAC Technology today to ensure your outsourcing efforts are built on a foundation of best practices and industry insights.