Many clients pose costs and savings questions to me when they have decided to embark on a large-scale outsourcing agreement:
Can we outsource our IT services this year and ensure we achieve our savings targets for the last quarter?
Lets' talk a little about the realities of outsourcing.
A full-scope sourcing transaction, with its technical complexities and decision-making is challenging and time-consuming to negotiate. It is unlikely you’ll be able to complete a contract negotiations, a full transition and achieve cost savings in the same year -- especially if you are just now starting to think about it. You might be able to source some components in a short time frame, such as Help Desk and Desktop, or your ERP system. But even if you complete a sourcing agreement in a single calendar year, the savings are unlikely to show up until the second year, and then, only if you manage the arrangement properly.