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Considerations for outsourcing Support and potential impacts on your company IT and BAU Support

Retained Services: The following management processes will need to be retained in-house by your company. If the skill sets do not exist then the capability and associated business processes will need to be created. 1. Benchmarking and SLA management: a key change in how your company IT support operate will be to effectively manage support and service contracts and the successful vendor/s. A key aspect is relationship management and the careful management of what services are being provided, the meeting of SLA’s and commitments, ensuring that quotes are a fair market price and that a strong partnership is developed to avid the costly “Us vs. Them” scenario. your company will need to understand what SLA’s for support that the business can tolerate and ensure that the vendor can consistently beat expectations for support 2. Supplier selection: The performance of due diligence on who we buy from or engage in the provision of services will be key. The need for penalties for non delivery. The potential need to engage more than one vendor for SAP Support Services (or as a back up) need to be discussed with a clear understanding of benefits and risks 3. Supplier process coordination and collaboration: your company will need to also understand the internal processes of any engaged vendor and their ability to synchronise their potentially more mature processes to your company’s developing and maturing processes. From past experience, vendors and suppliers tend to take advantage of less mature processes to either make more work or to use those processes as excuses for delays to service requests. 4. Authorisations and approvals: A clearly defined business process will need to be developed and agreed by your company for any authorisations or approvals including funding of change requests or changes in scope or services. 5. Change orders, contract changes, bidding (RFP), pricing (RFI): A clearly defined business process and business owner needs to be defined and agreed by your company for the management of changes (business and IT), contractual changes and a process for disputes or challenges to services offered. 6. Managing relationships with internal customers: A clear matrix of how the vendor engages your company needs to be defined and agreed. The relationship is owned by your company and controlled by your company management or Vendor Engagement Board. Key point of contact and central contact list of each element of the engagement would need to be developed and defined 7. Integration with internal processes such as HR: Internal processes if they don’t exist would need to be developed or updated accordingly 8. Financial controls, auditability, governance, contract management: functions, positions and processes will need to be developed within your company to support the vendor/supplier 9. Security, access and Identity Management: Access to your company systems for external support vendor needs to be understood (VPN, Local access, site access) with access solutions agreed and implemented within existing your company IT Security protocols and ongoing controls enabled Additional Considerations:            Develop and retain ownership of a Service Catalogue Undertake some form of service management framework, i.e. ITIL or ISO Understand the management impact of outsourcing Understand the people aspect of outsourcing and the impact to BAU Operations. Communication to existing employees of proposed changes Up-skill existing IT team leads and management on how to manage support vendors and suppliers Knowledge and skills transfer – partnership between support vendor and IT to ensure that SAP knowledge is imparted to existing Staff A single vendor or service provider may not be able to deliver what is required. What impact will there be if multiple service providers are engaged. Can and will the support vendor work with existing service providers, future vendors and your company IT BAU staff and management? Understand the ongoing governance and management of the service provider relationship and understand the investment in time, money and people it takes to manage a support contract. Establish a dedicated team of people, on both ends, to ensure compliance and adherence to agreed-upon service levels. New Roles, New Positions, New Processes           Service request process Change and scope management Contract management, RFP, RFI Relationship management Authorization and entitlement management Audit and Governance Process integration Issue and escalation management Invoice and payment verification Benchmarking (service reporting)

A new organisational structure may need to be defined as vendor management might be a new concept for IT