Are you midst of outsourcing your IT? or had a futile attempt? here uncover these facts

IT outsourcing is not new to the industry any more and it is matured than ever, but we still learn tragic stories and how companies go wrong with it so badly. I would like to offer few tips to uncover surprises which can save tons of money (few hundreds to millions of dollars)
1. Don't get into the trap of big/small outsourcing companies; look at their ability to deliver what you need.
2. The IT management (CIO/Directors/Managers) must communicate to their IT organization why and how outsourcing strategy is good for their company
3. Ask vendors about questions on attrition, skill development, hiring strategies, data protection, data privacy and many others may be unique to your business/industry.
4. Don't make your vendor selection factor alone based on low cost, but you should give equal importance on skills availability, expertise knowledge, responsiveness, flexibility, can-do attitude (be like your partner)
5. Do not sign-up for a big multi-year contract to start with, always try with low-risk, low-impact to business type projects typically a 3-6 months duration.
6. Setup a Vendor Management office to track the performance of the vendor(s) based on the Service Levels agreed in the contract. Make sure you also have a clause in the contract for penalty for not meeting service levels.
7. Always have minimum 2 outsourcing vendors to compete at your advantage in terms of price, quality, service, and to mitigate risk
8. When the relationship evolves with the vendor involving them in critical projects and support activities, keep your vendor management have an eye on vendor business (specifically their finances, key management changes, acquisitions etc.) to uncover surprises
and many more...if you need more information, write to me at sameer.penakalapati@google.com