The simple reason
The simple reason being this decision will bring about significant business risks in the form of transferring day-to-day responsibilities of running mission-critical systems to a 3rd party. In addition, there may be considerable operational impact on staff that comes in the form of adjustments in working styles.
The objectives of outsourcing generally comprise of the following:
? Cost control / savings
? Concentration on core activities
? Access to new skills and technologies
? Overcoming internal organizational inertia to effect change
Objectives have to be clearly identified by the CIO and he will also have to take on the responsibility to communicate these objectives to all respective stakeholders from the outset of the process.
A outsourcing relationship that starts without clearly-defined objectives frequently fail, or may require significant remedial efforts to reset expectations and amend the services agenda.
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