Outsourcing

About Hugh Pike

Hugh is an experienced consultant and trainer in commercial negotiations, specialising in outsourcing engagements. He was a senior commercial negotiator in IBM’s Global Services division during a period of twelve years, prior to becoming freelance in 2005. During his time in IBM, Hugh developed a wealth of experience in outsourcing during deal negotiations with customers in a wide variety of businesses, primarily in the private sector. For the last two years prior to leaving IBM, he had responsibility for outsourcing engagements across Europe.

Introduction

The business of outsourcing arguably requires a detailed plan and more rigorous monitoring system - after all, the organisation is typically giving up control of a critical part of its business operation to an external enterprise. Recognition of the latter should not deter directors from consideration of outsourcing, nor indeed from persevering with an outsourcer in difficult circumstances. Rather, it should encourage directors and senior managers to devote the appropriate resources and energies to creating and maintaining the level of rigour and discipline necessary to keep the outsourcing project on track and to realise the huge benefits that it can offer.

The benefits of outsourcing software engineering or I.T. activities are well recognised. The organisation can focus on the skills, resources and activities needed to advance its core business, whilst leaving the performance of software engineering I.T. related tasks to the acknowledged experts or low cost centres - namely the outsourcing service provider. Software engineering or I.T. outsourcing also facilitates access to a deeper pool of skills, better availability of resources, and more opportunities to introduce new technology and improved techniques.