How a Target Operating Model determines the success of outsourced IT services
More and more organizations are opting for outsourcing to increase innovation capacity, control costs, and become more agile. However, in practice, realizing those benefits does not happen automatically. The question we at SourceMinds often receive is: “Why isn't our supplier delivering what we expect?” In many cases, the answer does not lie with the supplier, but with the lack of a future-proof Target Operating Model (TOM) and a mature governance organization.
Why a TOM is essential for outsourcing
With outsourcing, responsibility for execution shifts, but ownership remains with the client. A TOM helps to clearly define this new division of responsibilities. It provides clarity regarding:
- Who decides?
- Who directs?
- Who executes?
- Which processes are leading?
- How does the collaboration between business, governance, and the supplier work?
This prevents misunderstandings, grey areas, and overlapping tasks, common causes of inefficient service delivery or unnecessary escalations.
The governance organization as a critical success factor
A TOM stands or falls with a strong governance function. The governance organization monitors the entire service delivery and ensures that the agreements
A mature governance organization ensures:
1. Control over performance
Through structural monitoring of KPIs, SLAs, and chain performance, the organization gains continuous insight into quality as well as opportunities for improvement.
2. Transparent collaboration
Governance brings all stakeholders—business, supplier, and internal teams—together and makes dependencies visible.
3. Predictability and stability
Clear governance, roles, and consultation structures create stability in operations.
4. Value-driven management instead of ticket-driven management
Governance helps organizations look not only at incidents, but at real business value: continuity, innovation, and customer satisfaction.
TOM + Governance = Successful Outsourcing
When the TOM and the governance function are designed integrally, a model emerges that:
- aligns with the business strategy
- fits the sourcing model
- is scalable for future growth
- offers room for both control and innovation
As a result, organizations experience greater control, better collaboration, and higher service quality. Outsourcing transforms from a reactive supplier relationship into a proactive partnership.
How SourceMinds can help
We support organizations in designing and implementing a TOM that truly works—pragmatic, clear, and future-proof. With our expertise in IT sourcing, SIAM, governance, contract management, and ITSM improvement, we ensure that structure, governance, and collaboration are optimally aligned.
Would you like to explore how your organization can create more control, quality, and predictability? Get in touch. We are happy to think along with you in an independent, pragmatic, and results-oriented manner.