Previous experience with traditional outsourcing may ease cloud adoption
It may sound surprising to some people that the probability of success in a cloud adoption project can be increased if the buyer organization has had a previous experience in the traditional outsourcing area. More surprising yet: this may be true even if such previous experience was not completely successful. Which facts support such conclusions?
Published on: Mar 4, 2016
Transcripts - Previous experience with traditional outsourcing may ease cloud adoption
IT Sourcing Consultant
A surprising statement ?
Facts that justify it
Lessons learned … in chapters
Identification of business drivers linked to the
Definition of implementation strategy
Negotiation of contractual terms and conditions
Planning and implementation of services transition
Definition of governance process and relationship
with and between providers
It may sound surprising to some people that
the probability of success in a cloud adoption
project can be increased if the buyer
organization has had a previous experience in
the traditional outsourcing area.
More surprising yet: this may be true even if
such previous experience was not completely
successful. Which facts support such
Under an IT services outsourcing perspective,
cloud adoption is merely one of the possible
(and surely promising) options for the
external contracting of IT services by an
Many aspects are common to all existing
alternatives, and the long matured and
learned lessons during a previous exercise
may be a relevant facilitator for the
exploration of such innovative option.
This will avoid the same mistakes be made
and will bring more effectiveness to the
decisions taken along the cloud journey.
Such matured and learned lessons are normally
identified during each step of the previous experience:
Identification of business drivers that motivated the decision
Definition of the implementation strategy
Definition of the operational model to be deployed
Contract terms and conditions negotiation
Services transition planning and deployment
Contract governance and relationship among all stakeholders
Many of the activities performed in each of
these steps are similar, no matter if we
consider the traditional outsourcing or the
To these similarities, be sure to add the
applicable cloud specific components
It should be emphasized that, on the
contrary, if lessons learned are not
adequately considered, success probability of
a cloud project can be significantly
More surprising yet, this trend can be
perceived long before cloud specificities are
added to the discussion.
Naturally, a cloud adoption project can be
successful even if no previous outsourcing
experience existed, but ...
... there is no doubt that the task will be
harder because lessons will have to be
learned in-flight, frequently in a trial-and-
error process that will confront many
unknown and/or unexpected hurdles.
The decisions to be taken along the cloud adoption
journey and whose hit rate can be significantly
increased as a consequence of the accumulated
previous experience, for each step of the process, will
be presented in the next slides
Typical traditional outsourcing business drivers are
focus on core business,
access to specialized skills,
business processes transformation and standardization,
regulatory and compliance requirements
Which of the above business drivers are still relevant
in the cloud scenario for your organization?
Which “new” business drivers, typically aimed at in a
cloud project, must be added and with which priority
relative to the “old” ones still considered relevant?
“New” business drivers, typically prioritized in the
cloud scenario are market-share increase, time-to-
market decrease, customer experience improvement,
apps innovation and workforce mobility, among
How the current scenario (which can be a mix of
traditional outsourcing - ITO and/or BPO - and
workloads still kept on-premises) will be modified as a
consequence of the cloud adoption?
Which workloads will be moved to the cloud
environment and with which progression rate? Which
workloads will be kept, temporarily or permanently,
in their current environments (ITO, BPO, on-
Which typical selection criteria on traditional
outsourcing stay relevant on cloud scenario?
Among them, we can name:
proven provider capacity,
robustness and innovation of solution proposed,
up-to-date technological infrastructure,
list of customers and
Which “new” typical selection criteria on cloud
scenario (sometimes associated to a certain cloud
market immaturity) should be added and which is
their relative priority to the “old” relevant selection
Some we could name are:
finance and structural robustness,
available infrastructure geo dispersion,
ability to integrate with competitors’ solutions,
security and compliance infrastructure and procedures.
Which previous critical negotiation factors became
irrelevant on cloud scenario?
Among them, we can name:
assets management and
the transfer of human resources from the buyer to the
Which negotiation factors keep critical, although they
should be negotiated in light of the cloud
We can name:
service level agreements and associated penalties,
services charging metrics,
volume consumption verification,
contract cancellation and
conflict resolution procedures.
Which “old” negotiation factors became especially
critical on cloud scenario?
Some of them would be:
legal contract jurisdiction,
responsibility concerning security and compliance issues,
consequences concerning service failure,
data integrity and recovery
Which previous factors remain relevant on cloud
Some of them can be named:
joint planning and limits of responsibility between buyer
and provider during transition,
transition team definition and
communication procedures between parties during
Which factors became critical on cloud scenario?
Some of them are:
the integration of services provided by a big number of
the dissemination among users of information concerning
charging and additional services request
Which “old” elements keep critical on cloud scenario?
We could name a few:
structuring of buyer governance function,
selection of skilled governance team components and
definition of executive and operational meetings
periodicity and agenda
Which additional elements appear as critical on a
Among them we could name:
definition of tools,
skills and procedures needed for a cloud management
function, aiming at
agility, effectiveness and automation during new
additional services request,
cost control and
As shown, a previous experience on a traditional
outsourcing project lets organizations anticipate how
to deal with many of the aspects involved in each step
of the adoption of the cloud alternative.
The lessons learned along this previous experience
permits a solid base be built for cloud deployment,
over which all specific issues of the cloud scenario
must be mandatorily and adequately considered.