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IT outsourcing initiatives have a key component: Change management

by , 18 February 2015
Change management is one of the top aspects to keep in mind when implementing important alterations to the general functioning of a company.

Despite thoughtful company policies, this side of change management conducts the risk of remaining uncovered.

When it comes to IT outsourcing, most companies see this as a change which comes with several benefits of which we recall smaller costs, access to scarce skills and possibility of implementing powerful modern practices.

This method however fails to take full advantage of its own definition and this is due to a default in the process of implementing the outsourcing itself.

Shailendra Singh, the Business Director of Wipro Ltd.explains that in order to ensure IT outsourcing delivers on the expected benefits, change management is an essential component, central to the success or otherwise of the initiative, and cannot be overlooked.

This gap produces because most companies fail to see the real impact the IT outsourcing will have on the company at all the levels.

Singh also mentioned that a large proportion of the time and money involved in the IT outsourcing process is spent on finding the right outsourcing partner:

- hiring consultants to act in an advisory capacity

- identifying potential suppliers

- evaluating responses to requests for proposals

- conducting due diligence

- researching the supplier

- negotiating the contracts.

And companies should not think that the changing process reaches its final step here. This is where change management is most needed after understanding that the business users need to adapt to the new processes brought along by the IT outsourcing decision.

A major risk concerning this area refers to the fact that if the users are not reassured that their needs will be met, the new change runs the menace of encountering internal resistance.

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