OUtsourcing,103,Criteria,for,E business, insurance OUtsourcing 103

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Criteria for Evaluating Outsourcers 1. Commitment to Outsourcing:outsourcing is distinctive and in many ways requires expertise beyondyour typical system integration services. It requires specific methodsand experience. How long has the company been involved in the outsourcing industry? Howis the company organization when it comes to staffing, commitment tospecific customers and industries, and dedication to resolving specificproblems and needs? How much is the revenue and profit percentagecoming from outsourcing? 2. A Flexible and Proven Methodology/Function:There will be little time to explore your way to the paradigm oftechnical and management issues due to the short transition periodgiven to the outsourcer taking over your IT business. A flexible andproven methodology will provide your outsourcer with a benchmark andthe tools for them to be able to meet your specific needs. Do you/they have a standard methodology? Is it fully documented? To what extent is it used?Has it been used successfully in the past? Where has it proved unsuccessful? Why? 3. A Pathway and Access to Talent:The key to any solution is the Executive management, projectmanagement, programming and testing talent. The capability of poolingin talents and experts is very crucial. Especially if you may needoff-shore designers, programmers, and testers who are usually lessexpensive than your conventional labor force and which are morefamiliar with older technologies. Howbig is the outsourcer staff in terms of: consulting staff? Analysisstaff? Design staff? Programming staff? Testing staff? Documentationstaff? Implementation staff? Help desk? Knowledge in terms ofmainframes, customer server, telecommunications, etc.?Does the outsourcer have a relationship with off shore or domestic programming "factories"?How does the outsourcer go about with training and integration of staff? 4. Industry Knowledge and Superiority (Intellectual Capital):It is a must that the outsourcer possesses special industry knowledgeespecially in regulated industries or those undergoing legislativechanges. For other industries, this may not really be important. As yourelegate your manpower to the outsourcers, you are likely to rely onthe knowledge of outsourcers as to your industry and more. Howcomprehensive is the industry knowledge and superiority of youroutsourcer in terms of your current and future industry needs?What connections, positions do they hold with key industry organizations? 5. International Scope and Presence:Your organization should be looking for an outsourcer that will be ableto handle your current and future needs and be able to coordinate incorrecting problems on a global perspective. This will be particularlyneeded in testing interfaces on different platforms, in differentlanguages, and between different systems world-wide. What experience and resources does the outsourcer have outside of the United States?Where are the outsourcers' key offices situated?What treaties is it a member to and does it abide by? 6. Organizational and Financial Staying Power:To outsource your processing information needs, which could bepartially or all the way to your entire information technology functionis a risky business and requires a marriage between the parties. Yourorganization should observe due diligence in the selection of theoutsourcers making sure that the latter is right for you and has a longbusiness life span. There are many instances where giant outsourcershave a battery of lawsuits for failure to deliver service. It is alsocritical that you thoroughly examine all related financial data of theoutsourcers, corporate organization strategic plans, and corporateculture and history. Make sure that you see the gauge of businesshealth of the outsourcer. 7. Customer/Referral Base:Because it's easier to trade extra services to new customers so take onoriginal ones, an outsourcer with a powerful and different client homeis possible to get the inside course on original opportunities atexisting customers and therefore have improved "staying ability”.Checking the references of new customers is possibly the almost severecriteria for judging outsourcers. While nobody likes to acknowledgethey selected the incorrect outsourcing spouse, there are ways to buildresonance rapidly with your interviewee, and have that individual tospeak about "things" that they would make differently if they had tohave the outsourcing resolution, draft the outsourcing contract, orhandle the outsourcing relationship differently in the future. Get thiscrucial data, and hear from others' mistakes and adapt your thought asneeded. 8. Strategic Alliances:Successful outsourcers have almost probably engaged in importantalliance and relationships with new parties (i. e. , tools establishproviders, methodology companies/consultants, testing houses,catastrophe recuperation companies, particular "leading margin"integrators, etc. ). Such alliances offer a willing approach toresources and tools that maybe otherwise insufficient. Wouldn't youlike these resources to be accessible to you when needed? What relationships and important alliances does the outsourcer have? To what extent have these relationships and/or tools been integrated and used by the outsourcer before? To what extent might they be needed and integrated into your needs? 9. Strong Commitment and Budget for Research and Development:Not only will your company change over time, but the informationtechnology industry will change. Your outsourcing needs a powerfuldedication and budget for R&D so that it may go reward of originaltechnologies as they get accessible and rapidly decide which might beproper for your needs (e. g. RAID systems, ATM, HIPPI switches, FiberOptic vs. Satellite Communications, original web architectures,original I-CASE tools [Integrated-Computer Assigned SoftwareEngineering], etc. ) 10. Quality of the Contract:The contract must get the proper clauses and incentives to remain tohave the outsourcer do and to remain to have you do. Any article thatappears biased in favour of the outsourcer, should too be written withyour figure place in spot of the outsourcer. See if that makes for animpartial relationship and would be satisfactory to the outsourcer. Inaddition, if the outsourcer gives you a contract that is "overly betterto be genuine" so it likely is! Just believe about the seniority andsubsequent problems the outsourcer will get if it offers the same goodadvantages to hundreds of new customers. Are they better job folks?Will they remain in the industry for so long? 11. Willingness to Negotiate:The real procedure of negotiating the contract and reaching a consensuson hard alternatives, is a periscope into what living will be like withthe outsourcer in the future as unexpected needs go upward. How youroutsourcer handles the negotiations regarding its contract, and howready they are to hear to your tale and needs and alter their accesswill suggest whether or not your relationship will be productive in thefuture. 12. Insurance and Litigation History:Look at your outsourcer's operation bond history and policy policies,their criteria for selecting original customers, and their story oflitigation (all litigation including wins and losses and settlements.This will say you a plenty about what mistakes the outsourcer has madeand whether it has learned (or is yet learning) as it continues to haveits job productive.