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Managing
Applications
Applying
The Outsourcing Model Internally
How are the three application types (utility, enhancement,
and frontier – see the accompanying article
“Who Owns the Infrastructure?) managed in the
outsourcing world? This perspective provides clues
that can help guide determination of ownership within
the enterprise.
‘The
Contract’ vs. ‘The Relationship’
in Partnering
In the outsourcing market, companies rely on a legal
contract to define terms and conditions, tempered
by flexibility to the dynamism of business and technology.
The combination of contractual management and relationship
management defines how the partnership works. The
same rules of thumb can be applied if the IT services
in question are being provided directly by the internal
IT department.
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In
utility deals, the contract is dominant. It prescribes
technical performance levels. The relationship
management aspect is critical to act as a buffer
to accommodate change and adjust performance.
The importance of a "good contract"
serves both parties well to ensure clarity of
understanding in expected outcomes, service-level
agreements and other details. |
| • |
In
frontier (enhancement) deals, the contract remains
an important guide to specifying outcomes, and
process teams will rely on it to set and monitor
performance. However, equal importance is given
to the relationship management component —
largely to accommodate flux in business cycles. |
| • |
In
transformation deals, relationship management
dominates; the contract provides basic structure.
The partnership becomes the tool for ensuring
the value of the relationship. [above you talk
about utility, enhancement and frontier. Is this
the enhancement section? Does transformation =
enhancement? I would advise consistent use of
terms here] |
How
to “Relate” to Business
Determining which of the above categories the application
falls into is a start; everything else is negotiable.
External applications providers offer another insight
for internal professionals: how to manage the relationship.
IT should assume the role of the external provider,
and do the following:
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Take the initiative to talk about needs and strategy
for the purpose of spending IT dollars wisely,
and for providing and capturing feedback |
| • |
Appeal
to stakeholders’ personal measures of interest.
Find out what they are. |
| • |
Educate/illustrate/offer
options to consider from the field (e-business,
mobile, knowledge management, zero latency enterprise) |
| • |
Accommodate
personal needs for comfort, confidence, awareness.
Talk business, not technology |
By
“playing the role” of an external service
organization, IT becomes more business-focused. The
results in every application are positive.
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