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Here is where hidden problems and $ Costs of IT Outsourcing begin to pile up: Part 5

June 15, 2015 • Application Support, CIO, General ITIL Discussion, IT Outsourcing and ITIL, ITIL V3 for Application Support

  • Additional $ Cost because your IT staff cannot move to new assignments. They are still fixing problems, many of which are caused by the vendor. They continue to fight fires with application users because of a lack of specific problem-solving techniques known by your IT support staff.
  • The vendor’s staff seems to be missing critical application knowledge that is in the heads of the current support team. They must relearn solutions that were previously known un-documented resulting in delays and additional $ Cost to fixing application problems.
  • Additional $ Cost to business users, because they cannot perform their job while waiting for problems to be fixed.
  • Business opportunities lost to competitors because your critical business function enhancements are delayed. Your competition does not seem to have this problem.
  • Additional $ Cost because users are taking longer to complete their normal business functions because of additional time it takes to get technical questions answered by the vendor.
  • Vendor staff turnover means additional application knowledge is lost resulting in $ Cost associated with the vendor retraining new people who must re-learning or recreate knowledge needed to support the application and business users.
  • More lost time and additional $ Cost required for the new Vendor’s staff to find and fix problems, respond to user queries and develop application enhancements.
  • Additional $ Cost for vendor personnel to research application functions and how they work for business users.  They cannot communicate effectively with application users because they do not understand business terminology used in your company.
  • Software defects go up resulting in additional $ Cost for re-work and additional $ Cost in lost productivity of business users – A double hit!

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