Stories by: Bart Perkins

The basic management controls required to run an effective IT organization are quickly becoming a lost art. Many companies have lost touch with the fundamentals of IT management. The industry originally learnt these fundamentals during the 1970s and 80s, but today there are large numbers of IT organizations with surprisingly weak management controls.

Many companies feel that their IT organizations are "broken" or irreparably damaged, and indeed, some are. The symptoms of a damaged IT organization are all too familiar: failed projects, big write-offs, high CIO turnover, an outdated technology base and uninvolved executives telling the latest CIO, "Call me when the problems are fixed". These companies are often tempted to succumb to the siren song of the outsourcers who offer to take over all of IT and promise to fix it.

Many companies feel that their IT organizations are "broken" or irreparably damaged, and indeed, some are. The symptoms of a damaged IT organization are all too familiar: failed projects, big write-offs, high CIO turnover, an outdated technology base and uninvolved executives telling the latest CIO, "Call me when the problems are fixed." These companies are often tempted to succumb to the siren song of the outsourcers who offer to take over all of IT and promise to fix it.

Successful outsourcing efforts need metrics that are clearly defined, effectively monitored and always tied to the needs of the business. Good metrics support your cost and service goals and are consistent with your culture.

Outsourcing is perceived as the silver bullet of the day, and many companies indeed benefit from it. But the dirty little secret of outsourcing has emerged: Everyone isn't happy.

If onshore and offshore outsourcing is the new wonder drug, "human factors" should be listed as both a benefit and a side effect. Human factors are one of the most important parts of any outsourcing effort, particularly when the outsourcer is located offshore. To proceed successfully, you should carefully consider the people issues from both sides: benefits and drawbacks.

Most organisations recognise the importance of having a rigorous supplier selection process and focus a lot of attention on supplier acquisitions. However, many underestimate the importance of having a supplier termination process. Since the IT supplier portfolio must match a dynamic business strategy and ever-changing IT architecture, an untrimmed portfolio will continue to expand. It's essential that your supplier portfolio be reviewed and pruned regularly to remove suppliers or products that are no longer needed. Careful pruning will reduce costs and infrastructure complexity.

A well written IT services contract defines many client-specific requirements. But too often, the metrics needed to measure and meet those requirements are overlooked during contract negotiations.

Most major corporations are considering outsourcing everything from the corporate cafeteria to IT and beyond. Outsourcing is often touted as an easy way to achieve more functionality for less money, with less aggravation.

Most major corporations are considering outsourcing everything from the corporate cafeteria to IT and beyond. Outsourcing is often touted as an easy way to achieve more functionality for less money, with less aggravation.

Poor buying decisions cost your company more than money. The size of your IT supplier portfolio demands that buying decisions be made as part of a disciplined enterprisewide process, guided by your IT architecture. Without that, countless uncoordinated buying decisions will create an infrastructure that's overly complex and too complicated to function effectively.