Governance costs account for a considerable proportion of post-signature outsourcing spend. The role of the governance organization is to ensure effective collaboration between the customer and service provider(s); specifically, the interaction of IT supply with demand. This presents a significant challenge for client organizations, as approximately 30 processes can be identified within the area of contract governance services that are traditionally retained and managed by the client’s internal organization.
This ISG white paper examines the governance issues faced by all organizations that outsource IT services, and presents an alternative solution to retaining the governance of those contracts in-house. That alternative: Outsourcing the non-strategic processes to an independent third party. The financial and non-financial benefits associated with this approach, which many organizations are starting to recognize, are also considered.
About the author
Tina Roy
Tina has more than 25 years of experience helping global enterprises make smart IT outsourcing and governance decisions. Tina’s team designs and implements Governance Managed Services and technology platform solutions to help companies reduce risk, cost and value leakage and improve processes that help achieve maximum value from their contracts and providers. Prior to ISG, Tina worked at Siemens IT Solutions and Services where she served as Vice President of the Financial Services sector where she was responsible for a 6-00-person global sales and delivery team managing $120 million in annual revenue.
