Need Help? Call 1-866-711-5837

IT Outsourcing Procedure | ITAD109

ITAD109 IT Outsourcing Procedure

Share this

easily editable in ms wordIT Outsourcing Procedure

The IT Outsourcing Procedure provides guidance for managing the outsourcing of all of your company’s IT functions. The IT Outsourcing Procedure ensures that outsourcing affords the best overall solution to an IT problem by satisfying customer requirements while controlling costs and conforming to your company’s strategic goals and objectives. It may apply to any IT function or process. (12 page, 1927 words)

In the case of a first-time outsourcer, the outsourced function should present a minimal risk of failure to the company if it does not meet requirements or the outsourcer fails to live up to any of the Service Level Agreements in the contract. Responsibility for maintaining effective internal controls over financial reporting in conjunction with outsourced activities rests with the company’s chief financial officer, regardless of the company’s level of control over those outsourced activities.

IT Outsourcing Responsibilities:

Information Technology Managers are responsible for managing the outsourcing proposal process, administering outsourcing contracts, overseeing outsourced projects and reporting to Top Management on their status, maintaining relationships with outsourcers, and evaluating outsourced services. They should periodically meet with Top Management (at least annually) to review the company’s Information Technology Outsourcing agreements.

Financial Management is responsible for conducting the parts of the Due Diligence Investigation pertaining to financial matters.

Top Management is responsible for final approval of outsourcing contracts. Top Management should consist of the company’s chief executive officer and chief financial officer, at a minimum.

IT Outsourcing Definitions:

Outsourcer – An outsourcing vendor; a business entity providing necessary services to the company, allowing the company to lower operating costs and gain flexibility while gaining special expertise on an as-needed basis.

Outsourcing – Seeking services (resources) outside the company, typically to reduce costs, gain flexibility, and benefit from an outsourcer’s expertise with respect to a given function or process.

Service Level Agreement (SLA) – A binding contract, formally specifying or quantifying a customer’s expectations with regard to solutions and tolerances; a collection of service level requirements, negotiated and mutually agreed upon by the service provider and the consumer.

IT Outsourcing ProcedureIT Outsourcing Procedure Activities

  • Identifying a Candidate Function For Outsourcing
  • Selecting an IT Outsourcer
  • Outsourcer Billings
  • Arbitration
  • Outsourcing Relationship Management

IT Outsourcing Procedure References

  • Sarbanes Oxley Act of 2002

IT Outsourcing Procedure Forms

 

SKU: ITAD109 Tag: .

Reviews

Write a review

There are no reviews yet.

This item is included in the following item(s):



The five-manual CFO financial accounting policies and procedures Bundle includes the policies and procedures a CFO or Controller needs to establish internal controls for your core accounting processes. Not only do you save time using these editable Microsoft Word templates, you save 35% off the list price when purchased as a set!

More >>



Easily develop your Computer & IT Policies and Procedures Manual to standardize your IT Operations with editable MS-Word templates. Use best practices to manage IT vendor management, IT security, IT assets, software development, and administration. Download your IT policy manual now.

More >>