Also, consider your exit strategy: Do you have a plan for resuming the delivery of services yourself if things don’t work out? And finally, are there limits on price increases at the end of the contract term? If not, you might feel trapped if the service provider decides to double its costs when the contract expires.
Where to start
If you’re going to try outsourcing, start with the areas where you’re having trouble or are the weakest, Tritsch recommended. To do this, you must understand the services you already offer, their cost, their value, and the impact that farming them out might have.
Long-term financial modeling is a must, he said. Also, keep people on your staff who are knowledgeable and experienced, so you’re not stuck if you have to return to an in-house delivery model.
In short, the answer to whether IT outsourcing makes sense will vary from school to school (and even from project to project); there is no one right answer.
Outsourcing is merely “a tool,” Tritsch concluded. “Use it where it has the most value—and don’t forget your safety goggles.”
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