IT Outsourcing Due Diligence Checklist
IT Outsourcing Due Diligence Checklist
General Items
- Conduct a risk assessment of the outsourcing relationship
- Establish a clear governance structure
- Create an onboarding plan for the vendor
- Prepare an exit strategy and transition plan
- Document all findings and decisions made during due diligence
Vendor Assessment
- Evaluate vendor's financial stability
- Review vendor's track record and reputation
- Check references from previous clients
- Assess vendor's industry experience
- Verify vendor's legal standing and compliance
Security and Compliance
- Assess data protection policies
- Review compliance with relevant regulations (e.g., GDPR, HIPAA)
- Evaluate security certifications (e.g., ISO 27001, SOC 2)
- Check for any history of breaches or security incidents
- Ensure vendor has a disaster recovery plan
Service Level Agreements (SLAs)
- Define clear service expectations and deliverables
- Establish performance metrics and KPIs
- Include penalties for non-compliance
- Review support and maintenance terms
- Ensure clarity on termination clauses
Cultural Fit and Communication
- Evaluate the vendor’s organizational culture
- Assess language proficiency and communication skills
- Consider time zone differences and availability
- Review collaboration tools and processes
- Ensure alignment on project management methodologies
Technical Capabilities
- Assess the vendor's technology stack and tools
- Evaluate the vendor’s expertise in specific technologies
- Check for scalability and flexibility in services
- Review infrastructure and hosting capabilities
- Ensure the vendor can support your technical requirements
Generated from Panda Checklist
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