Thoughts from the trench - by Prakash Muralidharan

February 16, 2008

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Outsourcing as a tool to further IT-Business alignment.

Filed under: Software Services, Outsourcing, IT strategy — Prakash Muralidharan @ 3:52 am

Prashanth brings out rather well the disconnect between IT and Business. He says "Today across the whole IT Ecosystem the focus seems to be always about the technology/ code/version/contractors never are the conversations or focus really about the business and its needs /objectives priorities. ". The problem is in part because of the very nature of the contrasting expectations from IT. On one hand, business expects an efficient IT shop that can be run on a shoestring budget and on the other hand IT is expected to provide a means to competitive advantage. Navneet suggests the usage of sophisticated tools like Analytic Hierarchy Process and Balanced scorecard to bridge the gap. Offshoring the tactical 'run the business' stuff can actually help focus your internal IT staff on the more strategic mandate of changing the business. Taken to an extreme, IT's role gets transformed into being a 'consultant' to the business with the IT 'work' getting outsourced. You can even outsource the management of the outsourcing leaving just IT strategy, architecture and a few other must haves in house.


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