Various IT outsourcing deals have different types of effectiveness based on the experience of whomever theIT outsourcing services are provided by. When there is a gap in experience, there will be a gap in the contract, a gap in IT outsourcing services and an erosion of the outsourcing relationship. As the IT outsourcing industry grows in maturity, more emphasis is placed on professionalization in IT outsourcing services so that erosion of the value is avoided.

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The Current Industry

The IT industry has grown a lot in the last decade. As the industry has grown, so have the processes, tools and career tracks, which are responsible for supporting it. However, there is still a gap in how IT outsourcing is done and who is responsible for it. While IT outsourcing is undisputed in its ability to deliver services, IT outsourcing risks are still present when it comes to how these services are outsourced.

It is important to ask certain questions such as who writes the SLAs? How service levels are measured and reported? How are services transitioned? How does the company resolve disputes? How is the business deal measured in terms of good and bad? What are the metrics involved? How does the company collect data? Are they focused on supporting business goals? Is there an exposure to the business that puts it at risk? All of these questions are vital with choosing to outsource IT services.

The Factors

IT outsourcing relies on the effectiveness of the experience of those involved in the project. Sometimes IT outsourcing will be managed from the purchasing department, the IT department and/or the legal/contracting department. Often there is a lack of standardized techniques, tools and templates that are a vital part of help the company achieve their goals. As a result of this lack of standardization there is often gaps found in the agreement, which can reduce the value of IT outsourcing services.

The Future

As the IT industry starts to mature and grow, a greater emphasis is going to be focused on professionalizing IT outsourcing through senior managers in order to fill gaps in agreements and protect IT outsourcing services. This success is coming by starting a number of industry initiatives like process standardization, building skill sets through professional certification and creating training programs with the focus of making outsourcing deals. A function that is quickly starting its own practitioners is outsourcing advisory and support services.

Professional Certification

There are plenty of IT professional certifications available in the marketplace. Many of these certifications can benefit the outsourcing industry. For example, there is the Project Management Professional (PMP) certification, which has an entire section focused on contracting. Then there is the National Contract Management Association that maintains a Certified Federal Contracts Manager (CFCM), the Certified Commercial Contracts Manager (CCCM), and the Certified Professional Contracts Manager (CPCM). All of these certifications can deal with the specific mechanics of the outsourcing contract.

Industry Growth

There is no doubt that the contract is key in IT outsourcing success, but there is more to an outsourcing relationship than a project that needs to be managed or a contract that need to be documented. Rather, the outsourcing relationship is an ongoing enterprise, which is directly related to the business and can have both dramatic and far-reaching impacts throughout several aspects of the business including both positive and negative effects.

This gap between the contract and the business is where outsourcing advisory experience has developed a strong foothold led by IT outsourcing. This is seen in the global, non-profit organization known as the International Association of Outsourcing Professionals (IAOP), which focuses on promoting professionalism in outsourcing. This organization has also started their own certification program known as the Certified Outsourcing Professional (COP). This organization is also responsible for creating an outsourcing Body of Knowledge and an increasing number of training materials designed to help companies and individuals achieve outsourcing certification and adopt a standard tool and process system.

Another increase in the IT outsourcing industry is a joint development project between the Software Engineering Institute and General Motor known as the Capability Maturity Model Integration for Acquisition or CMMI-ACQ model. This model helps to provide a guide to acquiring organizations that helps with initiating and managing product and service acquisition. This model focuses on the process of acquiring products and services as well as integrating the knowledge that is essential to successfully acquiring companies.

These efforts to improve the IT industry and their outsourcing endeavors have helped to increase the level of professionalism in outsourcing IT services. The certification efforts within organizations like the IAOP and the adoption of proven standards, especially by large IT outsources, will continue to increase the success of processes and enhance the career of those who work in IT outsourcing as well as those who want to develop stand alone professional skills.

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