IT Outsourcing: Common Mistakes You Need to Know

Outsourcing the Wrong Services, Instead of the Right Ones

Before an organization seeks out an IT provider to outsource a portion of its environment or services, they should complete an internal assessment to determine if the areas defined for outsourcing are appropriate. Will outsourcing this service really improve the performance or create a better user experience?

The New Latest, Greatest Service Offering May Not Be the Best Solution

If an organization makes their outsourcing decisions based on the latest and greatest and not what is best for the organization, the results that are achieved may not align with what the organization actually needs. Thus, it is best to avoid the lure of the newest, greatest technology. Instead, choose a technology suite and provider that suits your organization.

Musical Chairs: Not Addressing Foundational Problems, Just Changing Players

When organizations start to experience problems with their outsourcing agreements, many decide to simply change providers. While this can seem like a simple solution to the problem it usually doesn’t change much other than the address on invoices. Before companies switch providers, they should do an honest intake of the issues that they are experiencing and examine if a change in provider would actually resolve them. In the majority of cases, the issues and problems are foundational. Thus, these issues are best addressed internally and in cooperation with the current service provider.

Not Properly Evaluating the Level of Service

A business must ensure that the outsource provider is capable of providing the level of service required to support their organization. This includes being able to serve all office locations as well as being able to respond within the required time. If a provider is not capable of providing the appropriate level of service issues can occur. For example, the loss of productivity can be detrimental.  Ensure that there are target service level agreements (SLAs) in place. These SLAs guarantee that the provider is contractually bound to protect against this productivity loss.

Moving Forward

Utilizing IT outsourcing can be a considerable advantage to a business. However, there are several common mistakes that can occur when implementing IT outsourcing. Though, with proper planning and execution, common outsourcing mistakes can be prevented. The best way to ensure proper planning and implementation is to turn to a proven solutions provider. At Open Systems, we help large and small businesses as they implement business solutions to drive results. Contact us today to learn more!

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More and more organizations are turning to ERP systems to assist in the growth and reach of their businesses. The ERP market size is expected to exceed $49 billion dollars by 2020. This cements ERPs worth and value to the business community. Looking ahead, growth rates of ERP will be between 6.9% to 7.2% in the coming years. 

Since ERP systems are becoming crucial assets, it’s important that an organization’s ERP system is functioning at peak efficiency. Thus, providing the most return on investment (RoI). The best way to ensure RoI on an ERP system is to avoid common mistakes that can take a great system and turn it into a costly headache.

The Top 5 ERP Mistakes to Avoid

Per a CIO.com article here are the top 5 ERP mistakes to avoid.

Mistake Number 1: Not doing careful requirements gathering

It’s critical that processes that will be controlled by an ERP system are the right processes for an organization. Specifically, automating inefficient and outdated procedures will merely highlight the deficiencies that much more.

Mistake Number 2: Not Including End-users in the decision-making process

Many times, when ERP systems are being developed, actual end users are not being brought into the conversation early enough. Oftentimes, the designers of the ERP system won’t have the first-hand knowledge that users have, and simple tweaks can increase user productivity. Feedback should be elicited from end users early in the process to obtain buy-in and stave off potential user disruption.

Mistake Number 3: Poorly Executed Implementation

Implementation can be a very challenging time. Implementation must be well thought out and, where possible, phased in gradually so as not to overwhelm users and disrupt productivity. A gradual phase-in also allows problems to be identified early and with much less impact.

Mistake Number 3: Not properly budgeting for technology staff or outside support services

Not having staff within your organization who are well trained in aspects of your ERP system can cause many issues. If an in-house staff isn’t an option, make sure that you have at the ready consultants or solutions providers who can assist with any issues that occur during not only the implementation phase of your system but for the entire lifetime of your ERP system.

Mistake Number 4: Not thinking about how your entire organization will interact with your ERP system

Today, many organizations live and breathe on mobile devices and apps. Furthermore, these devices and apps allow them to conduct business while on the go. In this regard, the way these mobile devices and apps are used and how they will interact with an organization’s ERP system must be considered. ERP systems must be tested for compatibility with favored mobile devices and solutions need to be identified if there are any compatibility issues.

Mistake Number 5: Not having a Maintenance Plan

Many IT executives get so focused on the ‘end goal’ of implementing an ERP system, that they forget to think about the long-term impact of such a system; making sure there is a schedule in place for updates, testing, and enhancements are key. This ensures having a fully functioning ERP system at the ready, 24/7/365. Without regular, scheduled maintenance, these systems can lose efficiency and can suffer major deficiencies, especially in the areas of security.

Prevention is Key

The best measure against ERP mistakes is to ensure an organization’s system has been designed thoughtfully. Secondly, an implementation must be well planned and executed. Lastly, the job isn’t over once implementation is complete. A system needs careful guidance and maintenance to reach its full potential. The best way to prevent mistakes at all critical junctures is to seek the guidance and assistance of professional solutions providers to reduce the chance of lost productivity and to prevent headaches along the way.

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