Numerous factors influence the financial business case of any information technology outsourcing (ITO) initiative, including general market conditions, competition, and service provider strategies and motivations. While those are all very real inputs to the economics of a transaction, a firm seeking to generate operating savings through sourcing must focus on the factors that it can influence or control.
There are many decision points along the procurement process that determine the final outcome. The business case reflects the aggregation of many choices and assumptions: from building the initial requirements in the request for proposal (RFP), to collaborative solution sessions and into final negotiations of terms and conditions. This paper highlights those decision levers to inform buyers of the choices and provide a means to optimize the business case.
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