The primary benefit expected from most large outsourcing contracts is cost savings. How big is this benefit? The realized savings from large off-shore outsourcing has been estimated at 20-30%. Results vary and it is difficult to calculate the exact savings because IT organizations do not have good baseline cost measurements before outsourcing. Other factors include start-up costs to transition responsibility and knowledge to a vendor, increased management costs to manage an off-shore vendor, and additional costs for layoffs or early retirement of existing staff.
Requirements are the collective set of outcomes, functions, and specifications associated with an initiative. Scope is the collection of requirements that have been selected for inclusion in a specific project or phase. Splitting requirements across phases or projects is quite common and must be clearly articulated in the project documentation.
The other source of confusion regarding scope comes from emerging details. PMI calls this process "progressive elaboration". Early in a project, it is normal for requirements to be described at a high level while additional details emerge during later stages. The refinement of requirements details does not constitute a change in scope.
Scope documentation should include the sub-set of requirements that are included in the scope and a list of excluded requirements. Additionally, all assumptions used to define the scope should also be included. Assumption examples include mandated completion dates, availability of staff, and dependencies with other projects.
What does constitute a scope change? There are various types of changes that are considered scope changes. They include:
Secondly, outsourcing can be tactical in nature. Outsourcing application maintenance and support to a vendor allows the existing staff to work on strategic projects. This solution provides growth opportunities for the client staff to work on strategic projects while the vendor staff provides maintenance and support. When the system is finally retired, the vendor contract is ended.
Scope Definition - The initial definition and documentation of scope. It is critical that the scope is also cross-referenced to the requirements. Scope Approval - Acceptance and approval of the scope and the underlying assumptions by the project team and stakeholders Scope Change Management - Recognizing scope changes, documenting the change, and obtaining the necessary approvals. Confirmation of Delivery - A critical component of scope management is the confirmation that the in-scope requirements were delivered
Requirements are the collective set of outcomes, functions, and specifications associated with an initiative. Scope is the collection of requirements that have been selected for inclusion in a specific project or phase. Splitting requirements across phases or projects is quite common and must be clearly articulated in the project documentation.
The other source of confusion regarding scope comes from emerging details. PMI calls this process "progressive elaboration". Early in a project, it is normal for requirements to be described at a high level while additional details emerge during later stages. The refinement of requirements details does not constitute a change in scope.
Scope documentation should include the sub-set of requirements that are included in the scope and a list of excluded requirements. Additionally, all assumptions used to define the scope should also be included. Assumption examples include mandated completion dates, availability of staff, and dependencies with other projects.
What does constitute a scope change? There are various types of changes that are considered scope changes. They include:
Secondly, outsourcing can be tactical in nature. Outsourcing application maintenance and support to a vendor allows the existing staff to work on strategic projects. This solution provides growth opportunities for the client staff to work on strategic projects while the vendor staff provides maintenance and support. When the system is finally retired, the vendor contract is ended.
Scope Definition - The initial definition and documentation of scope. It is critical that the scope is also cross-referenced to the requirements. Scope Approval - Acceptance and approval of the scope and the underlying assumptions by the project team and stakeholders Scope Change Management - Recognizing scope changes, documenting the change, and obtaining the necessary approvals. Confirmation of Delivery - A critical component of scope management is the confirmation that the in-scope requirements were delivered
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