Application outsourcing sometimes is seen as a short-term opportunity to get rid of actual problems; but experience showed that this will only lead to more problems. Outsourcing need to be planned as something strategic; it can never be done successfully ad hoc.

From a quality point of view it is necessary to define and plan SLAs as well as measure how to use currently won experiences for improvements. It is not possible to define all things in advance; the outsourcing parties need to be ready for learning from experiences. This requires contracts which are to some extend flexible for adjustments.

Meanwhile Zürich has four years experience in application outsourcing with a large system integrator. This presentation will give some insights into recent experiences.

Key Messages:

1. Sourcing generally need to be seen as a strategic development, it is not something that could be done ad hoc.
2. Outsourcing requires a severe maturity level; transparency about maturity is very important and please don't try to outsource a problem.
3. Outsourcing demands a change process within the organisation.
4. Quality, Productivity and Flexibility needs to be planned, controlled and improved.