I found an interesting blog from The Outsourcing Weblog. It discusses an article from InformationWeek about the dead Deutsche Post IT Outsourcing deal.
The wrap-up of the article is that Deutsche Post canceled an Outsourcing deal with HP before signing it, because they became aware of the performance push of the internal IT department. It seems the internal office was also invited to propose a bid, and the manager took it serious. When standing with the back to the wall and there is a chance to avoid outsourcing, the internal bid was close to the bid from HP.
Lacity/Willcocks describe in their book “Global Information Technology Outsourcing” a proven practise regarding internal bids:
“Organizations that invited both internal and external bids had a higher relative frequency of success than organizations that merely compared a few external bids to current IT performance (p. 163)”
Strangely, it is not very common that the internal IT department can submit a quote. It would be positive in different ways:
- The IT department has a reason why to optimize processes/costs. Without a reason you don’t get the backing from the Managers and from the workforce.
- Understand and define Interfaces: If a professional Outsourcing Partner gets the deal, the department made some thoughts already about the processes and interfaces.
