Having made the choice to outsource the IT functions, the following steps should be completed to make the correct decision:

	1.	Determine what services to outsource:
		a.	Identify critical success factors (i.e. cost, quality, time, etc.) and criteria.
		b.	Rank success factors by business importance.
	2.	Determine which IT outsourcing firms provide these services:
		a.	Assess the organization based on:
			1)	Financial stability (good track record, solid business model, sound financial results)
			2)	Management and technical staff (how qualified they are)
			3)	Contract flexibility (time and materials, fixed price, other agreements)
			4)	Location (local, national, global)
			5)	Customer perception (long-term relationships with customers)
		b.	Determine selection criteria based on:
			1)	Breadth of services (outsourcing, system integration, consulting)
			2)	Business expertise (knowledge and expertise on business functions, including, finance, HR, manufacturing, customer service)
			3)	Project management methodologies (tools used for analysis, implementation, quality assurance and reporting)
			4)	Customer relationship management (contracts designed to fit the customer)
			5)	Existing technology partners (established partnerships with key vendors)
		c.	Seek request for information (RFI) and evaluate based on criteria.
	3.	Further evaluate top 3-5 candidates.
		a.	How is performance measured?
		b.	Are contractual agreements flexible?
		c.	What compensation is made for failing to meet objectives?
		d.	Will they provide reliable references?
		e.	Will our business cultures agree?
		f.	What is the expertise level and credentials of the service staff?
		g.	Is the candidate realistic in what they promise to deliver?
		h.	Who owns the work product and intellectual property?
		i.	What documentation is to be provided and who owns it?