The Evolution of Outsourcing Relationships

I read a great article on on Crippling Mistakes IT Departments Make and it sparked the following thought:

There is an evolution happening in the outsourcing relationship between IT service providers and their clients. IT support services delivered under the traditional client/vendor model have already become a commodity and even traditional Managed IT Services (pro-active monitoring, maintenance and tech support for a fixed monthly fee with value-added technology components and services) are rapidly going in that direction.

So what do I see businesses in Vancouver doing about this? We have had many new clients come to us because they are seeking a strategic partnership where they can get more than a company who can provide technical support, fix computer and network problems, etc. In the past, many have been promised this Holy Grail "strategic" relationship but never really had it materialize. Understanding what this is all about is the first step in making it happen!

Our first step in engaging with a new client is learning can we do for them over and above being "good" at technology. Quite honestly, we are supposed to be good at technology, it's what we do! It's like a doctor saying "I'm very good at analyzing your health and determining an appropriate course of action."

We spend a lot of time getting to understand the business so that we can find a way to make a positive impact to the bottom line. If we find that there is a lack of alignment, for example when a client sees technology as a burden vs. an enabler, we are up front in identifying this to save both parties a lot of time. We have four key factors which help determine if a client is aligned with our approach, although there are many more:

1. The client sees technology as a strategic or competitive advantage in their business
2. We have direct access to decision makers
3. There is an established IT budget (or desire to have one)
4. The client wants to be a leader in their specific industry

When a client agrees with these criteria, designing, implementing and supporting technology for them becomes straightforward. Ensuring that there is alignment is the first step, ensuring that the relationship grows and becomes truly "strategic" usually follows quite easily after that.

Update: Mike Knapp of Knapp & Associates posted a relevant blog post on Crippling Outsourcing Mistakes from the "other side of the fence". It's well worth reading if you are leading (or part of) and IT department.