One of the biggest mistakes CFOs make is failing to learn enough about their own environment and their own costs, says Mel Van Howe, an IT outsourcing consultant to hospitals.
"They let the outsourcer build the business case for them," he
"The business case should be built and owned by the hospital executive team."
Van Howe, principal with The Copperwood Group of Novi, Mich., says he gives CFOs a laundry list of items to consider before making a decision:
adds that it's important to get data and input from the outsourcer for comparison purposes, but you have to know and understand your own total cost of ownership figures.
When comparing the potential savings from outsourcing, CFOs also must pay close attention to the details of what's included and excluded in a potential outsourcing agreement.
"Otherwise, I can guarantee that within a year there will be a mismatch between expectations and what you're receiving," he
Consultant Van Howe says that although many CFOs like to keep their outsourcing deliberations confidential, he doesn't recommend it.
The CIO in most organizations resists the notion of outsourcing, so he or she may not be included in the decision-making process, but he stressed that it is not necessary to keep the process confidential from staff.
"People find out anyway, and that builds distrust and creates more of a problem," he