Outsourcing Small Projects

One challenge confronting CIOs is tracking and managing small projects.  Most CIOs have a very sound governance process for managing mission critical applications, IT infrastructure projects, and other large strategic IT initiatives.  All of their attention inevitably gets focused on these strategic and mission critical projects.  Small projects that are “quick-wins” for the business can get lost in the prioritization shuffle, and some of these projects may suddenly turn into unanticipated crises. 

The challenge with small projects, from a CIO perspective, is threefold:

  • Bandwidth issues – IT is busy putting out fires, focused on big, mission critical and/or strategic applications.
  • Even though the projects are small, procurement logistics are still time-consuming and complex.
  • Lack of visibility of the status of small projects – they can easily “slip off the radar”.

Procurement also faces challenges since their preferred Tier-1 vendors cannot deliver small projects efficiently, and their needs to be complete transparency in the vendor selection process. 

Having a single consolidator that manages the numerous vendors provides an efficient mechanism to implement small projects. Good consolidators perform due-diligence on the service provider network, match project needs to providers, and provide a dashboard to review the status of the small project portfolio.  The benefits of having a single consolidator include improving the procurement efficiency by providing a set of reliable, credentialed service providers, a one-stop procurement channel, competition between service providers and complete transparency in sourcing.  CIOs benefit by getting Tier-2 pricing together with a single point of control and total visibility on the projects.

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One Response to Outsourcing Small Projects

  1. Mohan says:

    Subbu,
    Interesting blog though I don’t agree with the comment “preferred Tier-1 vendors cannot deliver small projects efficiently, and their needs to be complete transparency in the vendor selection process.”
    I guess it is more the case of the business models of Tier-1 vendors being geared towards larger deals/projects and clients. Isn’t it more the case of larger overhead of managing smaller clients and projects that prevents Tier-1 vendors from venturing down the value chain? 

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