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Why you can't outsource IT governance (and what you should do)
Governance in IT does not mean simply keeping the lights on. It is the indispensable combination of overview, strategy and decisiveness. In practice, it's about steering, not waiting. It's knowing where the risks are, which systems help your company move forward and which ones slow you down.
With good governance, you have a grip on the entire chain: from applications to infrastructure, from performance to costs. You see at a glance where bottlenecks are and know what actions are needed to keep everything running smoothly. It's about making choices with a long-term vision, while solving short-term problems at the same time.
Governance is not the same as thoughtlessly outsourcing, it is mainly a matter of being in control yourself. It is your organization, your responsibility. With good governance, put your vision into action, make sure everyone is in line with your goals and turn your IT not into a cost, but into a competitive advantage. Governance? That's playing IT like a pro.
Why governance is essential when using I(C)T vendors
When engaging ICT solutions and vendors, it seems tempting to outsource management completely. Many vendors promise to take care of everything: from cloud services to application management. But beware: handing over management does not mean that your responsibility disappears. On the contrary, you remain ultimately responsible for performance, security and costs. And if you don't manage it yourself? Then others will take over-with potentially far-reaching consequences.
Without governance in place, you risk fragmentation: vendors working in silos, for example, without a clear understanding of your overall ecosystem. This leads to inefficiencies, higher costs and systems that don't work together seamlessly. Security breaches can occur because no one has the full oversight. And when there are problems? Then often everyone starts pointing fingers at each other, while you are left with the consequences.
Being in control also means keeping control: directing suppliers, monitoring performance and ensuring that solutions contribute to your strategy. It gives you the flexibility to respond to changes and prevents you from being stuck with choices that no longer fit. It is crucial to know where you want to go and to judge suppliers on that. Because those who don't direct are led. Led by suppliers in particular. Make sure you keep a grip on costs, performance and especially: your own future.
Why governance should not be outsourced to an external party
It seems logical to outsource the governance of your IT environment to an outside party. After all, they are the technical experts. But governance is about more than technical expertise; it is about strategic choices that directly affect your business. And that makes it harder to outsource than many people think.
An external party does not know your business goals, internal processes and unique challenges in detail. Their focus is usually on performing specific tasks within their own frameworks. But governance requires an overview of the entire playing field - someone who makes decisions based on your goals, not an external agenda or their own area of expertise. That broad overview can only come from within your organization.
Even hiring an experienced interim director is not without risk. An external force is often temporary, has less connection to your organization and can take valuable knowledge with them when the contract expires. And whatever happens: the ultimate responsibility and risks always stay with you.
Being in control is not an afterthought; it is a core responsibility. Take charge yourself and maintain control so that your IT strategy contributes to growth rather than dependency.
From business goals to technical reality: the crucial translation process
Setting business goals is one thing, actually realizing them is another. That requires a sharp translation to the technical implementation. Without that connection, a strategy is an ambition on paper. IT and technology are the engine of your business, but without clear direction, they are going nowhere.
It starts with a clear understanding of your goals: what do you want to achieve? More efficient processes, lower costs, a better customer experience? Those goals must then be translated into concrete requirements for your IT landscape. What systems are needed? What data do you need to support decisions? And what integrations will ensure seamless collaboration between teams and tools?
The challenge lies in bridging the gap between what you want to achieve and how to make it happen technically. This is where governance again comes into play: someone - the director - who monitors the overview and ensures that the technical choices match the strategy. If you choose the wrong tools or implementations, you run the risk of inefficiencies, blockages and costly mistakes.
Business goals and IT are not separate worlds. They should reinforce each other. Make sure your strategy does not degenerate into technical complexity, but that your technology becomes a strong tool to effortlessly achieve your goals. Because without that translation, chances are that growth will remain a dream, and that is obviously a shame.
The three must-do's in outsourcing governance
Well I am very persistent here that outsourcing is not the best option. And at the same time, I know that sometimes there is simply no other way. When outsourcing governance, pay attention to the 3 pillars below:
- Remain ultimately responsible at all times
Even if you outsource part of the governance, the final responsibility remains with you. Make sure you always keep oversight and know how the decisions of an external party affect your strategy. Transparency is key: ask for clear reports and make sure you keep a grip on the big picture. And say that you are the real director. - Thoroughly understand and communicate your own goals
An external party cannot fully understand your business vision. Therefore, make sure your goals are crystal clear and that the external director knows where the priorities lie. You set the direction; they support the execution. That means continuous clear communication. - Establish clear agreements and frameworks
Outsourcing governance only works if roles and responsibilities are crystal clear from the start. Establish what is expected of the external party, how performance is measured and where it fits within your strategy. Also arrange for crucial knowledge to remain in your organization, so that you remain independent of third parties. Moreover, agree in advance how to deal with deviations from measured performance and previously made agreements.
This approach keeps you in control of your IT, even when you outsource parts of the governance. It's your business, your strategy-make sure you stay firmly in control.
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