There are many aspects that go into creating a beneficial relationship between a buyer and a global sourcing provider.  One of the most important initial documents is the statement of work, also referred to as an SOW.

A statement of work is a document used to solicit proposals from global sourcing providers and is usually included as part of a Request for Proposals.  It describes the work that is needed and generally includes a timeframe as to when the project must be completed.  Vendors will respond to the statement of work with a proposal and cost estimate.  Buyers can then choose the most qualified vendor for the project.

Creating a statement of work is not an easy task and can be time consuming.  However, it is well worth the effort as it is fundamental to the success of the project.  A statement of work must be specific and clearly outline the work that is to be done.  If a statement of work is too ambiguous, it can lead to misinterpretation and future problems.  IT managers therefore, must take the necessary time to draft this essential document and ensure that it is detailed.

There are many items that should be included in a statement of work.  The scope of work required and the time in which it should be performed should be defined.  Hardware or software that is to be used should also be mentioned so that vendors know what is expected of them.  A statement of work generally discusses the location of where the work is to be completed and the allowable time for projects.  It should incorporate a schedule for specific deliverables.  If there are any special requirements, such as security clearance, necessary skills or travel requirements, it should be outlined in the document.

A statement of work might also include criteria for defining a project’s success or failure.  Defining success can be especially helpful in eliminating potential misunderstandings between the buyer and vendor.

When reviewing proposals from vendors, IT managers should evaluate the vendor’s plan for performing the required work, the skills of the vendor’s employees, performance history and price.  All of these factors are equally important and each one should be considered when choosing a vendor.

For more information regarding statements of work, contact A&E Consulting at 818-572-8399.  A&E Consulting assists companies looking to incorporate global IT sourcing into the overall business strategy and will help oversee the first outsourced project.

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