How do you assess and improve your IT outsourcing governance maturity level?

1 What is IT outsourcing governance maturity?

IT outsourcing governance maturity is the degree to which the client and the provider have established and implemented effective governance mechanisms, processes, and practices for their IT outsourcing arrangement. It reflects how well they communicate, collaborate, monitor, control, and adapt to changing needs and expectations. A higher maturity level means a higher level of trust, transparency, accountability, and value creation.

2 Why is IT outsourcing governance maturity important?

IT outsourcing governance maturity is important because it affects the outcomes and benefits of the IT outsourcing project. A low maturity level can lead to misalignment of objectives, poor performance, quality issues, increased risks, and dissatisfaction. A high maturity level can result in improved efficiency, innovation, agility, and customer satisfaction. According to a survey by ISG, a leading global technology research and advisory firm, organizations with high IT outsourcing governance maturity achieve 33% more cost savings, 28% more innovation, and 50% higher satisfaction than those with low maturity.

4 How to improve your IT outsourcing governance maturity level?

To improve your IT outsourcing governance maturity level, you need to define a clear vision and roadmap for your IT outsourcing governance, based on your business goals and priorities. You also need to establish a governance structure and roles, with clear responsibilities and accountabilities for both the client and the provider. You need to implement governance processes and practices, such as service level agreements, contracts, change management, escalation, reporting, and feedback. You need to monitor and measure the performance and quality of the IT services, using key performance indicators, metrics, and dashboards. You need to review and update your governance regularly, based on the feedback and lessons learned from both parties.

5 What are the benefits of improving your IT outsourcing governance maturity level?

Improving your IT outsourcing governance maturity level can bring many benefits for both the client and the provider of IT services, such as increased alignment with business objectives, enhanced value delivery and return on investment, reduced risks and costs, improved quality and reliability of IT services, increased innovation and agility in responding to changing business needs, and improved trust and satisfaction between the client and the provider.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?