First Step in Evaluating Outsourcing an IT System

D.

When considering outsourcing an IT system, the first step should be to review the outsourcing strategy. The outsourcing strategy should be reviewed in order to determine whether outsourcing is the right decision for the organization. The organization should consider the cost savings, the risks associated with outsourcing, the potential impact on the organization's operations, and the potential impact on the organization's reputation.

Once the organization has determined that outsourcing is the right decision, the next step should be to evaluate the IT staff skill sets. This is important because the organization will need to determine whether the current IT staff has the necessary skills to manage the outsourcing arrangement. If the current IT staff does not have the necessary skills, the organization may need to hire new staff or provide additional training to the existing staff.

The third step should be to evaluate the business processes that will be outsourced. This is important because the organization will need to determine which processes are critical to the organization's operations and which processes can be outsourced. The organization should also consider the risks associated with outsourcing these processes and the potential impact on the organization's operations.

The final step should be to negotiate service level agreements (SLAs) with the outsourcing provider. SLAs should be negotiated in order to ensure that the outsourcing provider meets the organization's requirements for quality, timeliness, and cost. The SLAs should also specify the consequences if the outsourcing provider fails to meet the agreed-upon requirements.

In summary, the first step when evaluating the possibility of outsourcing an IT system should be to review the outsourcing strategy. This should be followed by evaluating the IT staff skill sets, the business processes that will be outsourced, and negotiating service level agreements with the outsourcing provider.