Chapter 3. Management Principles: Core Capabilities and Contracting
Based on all of our studies of IT outsourcing, successful sourcing practices in the public and private sectors include the following:
Base the sourcing strategy on assessment of business, cost, market capability, and technology.
Create the sourcing strategy with senior executives as well as IT executives.
Ensure that nine core capabilities are retained in-house, including the capabilities to buy and manage third-party providers extensively.
For IT-enabled activities targeted for outsourcing, create a formal request for proposal.
Invite external bids (and internal bids where appropriate).
Analyze proposals, including risk assessment and mitigation.
Negotiate detailed, short-term contracts. ...