Outsourcing has companies scared of losing control over their applications, being over-charged and not having access to the "hot" skills they were promised. To override these fears, organisations must safeguard themselves, according to one industry analyst.
Speaking at the Meta Group's sixth annual Asia-Pacific conference, METAmorphosis 2002, Eugene Talasch said that in order for companies to embrace outsourcing, customers must feel that they have more control over their applications.
Talasch said companies also believe that if they are unhappy with the outsourcer, they cannot take the applications back.
Talasch said companies must understand how to structure a contract with an outsourcer. They should set out clear objectives about what and why they want to outsource, and should collect data to assess the market competitiveness of the prices/services charged by outsourcers.
Talasch said that application clauses are, in principle, no different to other contract in IT, but are a lot more complex. Outsourcing applications and managing them is still somewhat immature and requires special attention.