Relationships 'key to successful IT outsourcing projects'

29th June 2007

One of the main reasons many IT outsourcing projects fail is that a strong relationship is not maintained throughout the life of the venture, a new report suggests.

Research carried out by international law firm Bird & Bird and sourcing consultancy, Quantum Plus found that companies can improve the odds of their outsourcing being successful by maintaining a strong relationship over the whole project.

The report added that continuity of personnel, strong governance and alignment of expectations are also key if IT outsourcing projects are to prove worthwhile.

"Outsourcing arrangements that are launched with fanfares of publicity often flounder once the initial glamour of the contract awards has worn off and the hard grind of operational reality has taken hold," explained Bird & Bird partner and head of the firm's IT group, Roger Bickerstaff.

"Our survey revealed that one of the key reasons why outsourcing contracts fail is when relationships are not consistent, when in particular, the senior people initially involved lose sight of the key objectives of their outsourcing."

Eleanor Winn, Managing Director of Quantum Plus, added: "Well thought through governance structures which clarify roles and responsibilities and give specific procedures for handling change, innovation, escalation and disputes avoid ambiguity and give a shared framework within which people can develop relationships that work."

In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'.