CIO, monitor, supply chain, outsourcers

CIO's must manage supplier outsourcers

Many companies face risks because they are failing to monitor the performance of their suppliers and service providers, according to the results of two surveys published in September. A survey of 50 UK CIOs by IT consultancy Deloitte found that three-quarters believe that outsourcing IT functions can drive change, but over two-thirds do not ask for detailed reports about performance from their outsourcing providers.

Experts said companies should put systems in place to detect and monitor weak suppliers and so protect their business processes from possible disruption.

"The ongoing management of [outsourcing projects] is not being done in a robust and professional manner," warned Phillip Everson of Deloitte. "[The research] suggests that the people making [outsourcing] decisions are doing so to get rid of a problem. But you can't [just] outsource the problem as your business will still be affected." Everson said companies outsourcing IT functions should make sure they address any performance problems before handing over responsibility to a third party. They should also demand frequent reports from their service provider, so managers can monitor performance.

Keshab Panda, head of European operations at India-based IT service provider Satyam, said companies that develop a partnership with their outsourcing suppliers enjoy better returns. "We advise customers to put in place a long-term project roadmap in collaboration with us, so both parties know exactly what is expected," he said. Panda added that firms should also consider appointing a specific outsourcing or offshoring manager to oversee the relationship.

Source: vnunet.com