The most common reasons that prevents IT to reach full potential – 9th: Outsourcing

This post might be a little bit controversial 🙂

Outsourcing has a lot of advantages, but there is one very clear disadvantage, at least from my point of view. When you outsource part of your process to any company, you actually set up a fixed SLA for the outsources functionality. Once you set up SLA with external company your entire IT process is impact and set by the SLA you set up for the outsourced functionality. While agreeing on SLA, it doesn’t matter what your team can do to expedite the functions that they own in the process, the agreed SLA will set up the overall SLA of the process and there nothing that you can do about it.

So, If you are running agile IT shop that needs to respond to unplanned requirements and SLAs. Think twice before you decide to outsource part of your IT processes. This decision might affect your ability to execute and it will cost you a lot of money to change it in the future.

Fixed SLA

About friedkin companies CIO

Friedkin Companies CIO
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4 Responses to The most common reasons that prevents IT to reach full potential – 9th: Outsourcing

  1. Pingback: The most common reasons that prevent IT to reach full potential – 10th: Not leveraging compute, Storage and Networking as commodities | The Friedkin Group CIO

  2. Pingback: The most common reasons that prevent IT to reach full potential – 11th: Not leveraging Open Source | The Friedkin Group CIO

  3. Pingback: The most common reasons that prevent IT to reach full potential – 12th: Too long ROI | The Friedkin Group CIO

  4. Pingback: The most common reasons that prevent IT to reach full potential – 13th: Just using tools | The Friedkin Group CIO

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