You're struggling with problem solving in IT Outsourcing. How can you enhance your skills effectively?

In my experience , the issues are more fundamental than identifying “ what “ is not working . It’s the “ why” of outsourcing that changes from time to time and hence “ who is the right partner “ . With rapid changes in business context , it’s best to question the core strategic reasons for outsourcing every 3 years . Assuming you have set that right, the next major issue is whether the engagement model provides a win-win for a 3-5 year period for the customer and partner . Once you have solved these two, the operational challenges on technical capabilities or communication issues are easy to solve

It’s essential to develop a systematic approach to identifying issues early on. Start by implementing regular performance reviews and open feedback channels with both your internal team and the outsourcing vendors. For example, if you notice delays in project deliverables, dig deeper by analysing project timelines, resource allocation, and communication logs to pinpoint the root cause—whether it’s a lack of clear instructions, inadequate resources, or misaligned expectations. Encouraging a culture of transparency and continuous improvement allows you to identify patterns and recurring issues more quickly.

In IT outsourcing, identifying the root cause of a problem is crucial. With challenges ranging from cultural misunderstandings to technical errors, it's essential to break down the issue into smaller parts for a more accurate analysis. A well-defined problem is already half-solved, so invest time in fully understanding the problem before jumping to solutions. Precision in identifying the problem is the first step toward effective resolution.

Collect data from various sources, such as project management tools, vendor performance reports, client feedback, and team progress updates. If your projects are consistently over budget, analyse financial data, resource usage, and timelines to identify where inefficiencies or cost overruns are occurring. Use tools like dashboards and analytics platforms to aggregate and visualise this data, making it easier to spot trends and pinpoint specific issues. By systematically gathering and analyzing data, you gain a clearer understanding of the challenges you’re facing, enabling you to develop more effective solutions and improve your problem-solving capabilities.

Creativity in providing an appropriate outsourcing solution goes a long way to gaining the confidence of a potential customer. In my experience, when budgets are tight for an outsourcing project, a creative and flexible engagement model will oftentimes produce a win-win situation for both parties. In many instances, I have been able to take an equity position on a partial basis to make the engagement work and take the project to the next development phase.

Effective communication is essential in outsourcing. Focus on conveying your ideas clearly and listening actively to understand the needs and concerns of your team and clients. This reduces misunderstandings and fosters a collaborative environment. Additionally, developing emotional intelligence is key. By managing your own emotions and being sensitive to others’, you can improve communication, reduce conflicts, and enhance problem-solving. This combination of clear communication and emotional intelligence creates a more harmonious and productive work atmosphere.

Developing a good governance process. First monthly operation meetings to discuss SLA’s performance, projects deliverables and major issues. Key stakeholders from each company represent the outsourced towers. Owners on each side will report. The concentration should be on solving problems and not assigning blame. Functional meetings should happen each quarter. This is more high level discussing more long term issues. Contractually issues could be discussed here too. Also a good time for the outsourcer to present innovations and cost cutting initiatives. This should be a partnership, not a customer/ service provider relationship.

Problem solving process is an iterative one and most often people tend make one document and not change it over time. As things evolve with time and scale so should the process. At the least revisit the process every 3 months as change in technology landscape and vendor ecosystem does influence the Problem management process. Ideal scenario would be same problem is not repeated once fixed. As Technology debt builds over time due to various factors performance related issues on problem management needs to be factored into the process with clear metrics