As IT outsourcing has evolved so, too, have IT outsourcing customers' benchmarking needs. As a result, a new approach to benchmarking is necessary, a new method for establishing new and better ways of operating. Kathy Rudy, partner with outsourcing consultancy Information Services Group (ISG), discusses pros and cons of benchmarking for transformation and how to do it right.
A couple of weeks ago I was asked to moderate an HP-sponsored meeting on the subject of virtualization. Predictably, most of the discussion (attended by press and vendors including Citrix, Microsoft, Red Hat, and VMware) focused on cloud computing. It was a pretty lively session, but what I want to address here is an HP product portfolio called "IT Financial Management" that was discussed, along with its implications for cloud computing. As you might guess, the product focuses on financial analysis of IT operations, which is extremely relevant to the adoption of cloud computing.
Savvy IT outsourcing customers insist on including <a href="http://www.cio.com/article/29102/Outsourcer_Benchmarking_The_Sanity_Clause">benchmarking clauses</a> in their IT services contracts. Benchmarking clauses are beneficial to outsourcing customers because they allow the customer to bring in a third party to assess the competitiveness of the outsourcer's prices.