How to Win the Backsourcing Game: Challenges, Guidelines & Resources

 

With the trend of bringing outsourced functions back in-house gaining momentum, STAR BASE Consulting has been fielding more and more questions from clients anxious to avoid its pitfalls. As many are finding out, even when there is a clear case for backsourcing, the process is no walk in the park: As a matter of fact, it is often costly and complex.

 

Often the challenges start with contracts. Complicated negotiations and managing the timing of contract expiration dates so as to minimize termination fees can feel like herding cats. However, the prize for managing timing to align with your vision of repatriating IT is crucial.

 

Another big challenge concerns talent. Finding and training resources for those functions previously outsourced is tough. Managing them once they have been identified and trained in tends to be even tougher. And the fun doesn't stop there. You then have to be able to absorb the cost of hardware and software required to store, manage and develop those functions.

 

The other challenge we've been hearing a lot about is how to provide strong enough internal management to guide the organization through the complicated process of bringing said functions in-house. If this task just so happens to fall to you, consider reading the CIO.com article, 9 Questions to Consider Before Insourcing Outsourced IT.  It offers some terrific counsel on how to ground yourself in the right decision-making process, which should include the following questions:

 

1.      What are my goals?

2.      Do I have a solid business case?

3.      What are my termination rights and responsibilities?

4.      Who the heck knows what's going on?

5.      Can in-house IT support my future state?

6.      How much of this is my fault?

7.      Do I have business buy-in?

8.      How long will insourcing take?

9.      Who can help me?

 

This trend has so many people talking that STAR BASE will soon launch our 2011 Pulse Survey that will explore the issues surrounding backsourcing. The survey is slated to launch at the end of August and we'd like to know what you think: To participate, email Jeff Welsh at jwelsh@starbaseinc.com. In the meantime, if you'd like to speak with STAR BASE about challenges you are facing with backsourcing or insourcing in general, feel free to contact us directly at 513.245.0400.