Danger of Outsourcing

THE LAST THING most CIOs want to think about as they embark on a major outsourcing deal is what will happen when it ends. After all, reaching the decision to outsource some or all of an organization's IT services requires a great deal of business case analysis, transition planning and soul-searching about the best way to handle the many human issues involved. Assuming that the organization views the pending transaction as positive, or at least acceptable, this is a time of high excitement and tension, and it may not seem like the ideal time to plan how to get out of this arrangement in a few years. But you ignore the end game at your peril. Sourcing deals are risky, and some of the biggest risks are not visible in the rose-colored days leading up to deal consummation.…