Understanding the Right Balance Between Internal and External Resources
When planning an IFS Cloud upgrade, one of the most critical decisions a company must make is how to structure its project team. A well-balanced approach between internal resources and outsourced experts can ensure a successful upgrade while maintaining long-term operational sustainability. Outsourcing may seem like the easiest option, but it comes with challenges, particularly around business knowledge retention and skills transfer. This blog post outlines which aspects of an IFS Cloud upgrade can be effectively outsourced and which should be retained in-house.
Key Considerations: What Skills Should Be Retained Post-Upgrade?
Before deciding what aspects of your IFS Cloud upgrade to outsource, the primary question to ask is:
“What skills do we need to have retained at the end of the project?”
If the expectation is to transfer critical knowledge from outsourced experts to internal employees in the final stages of the project, this may lead to failure. The most effective way to embed knowledge is by involving in-house teams throughout the upgrade, ensuring they gain hands-on experience and understand the system’s nuances.
Areas Best Suited for Outsourcing
- Technical and Data Migration Skills
Technical activities, such as custom development, security setup, and data migration, are often time-consuming and require specialized expertise. These tasks are well-suited for outsourcing because they demand deep technical skills but may not be frequently needed after go-live. However, a hybrid approach is recommended:
- Utilize external consultants for the bulk of the technical workload.
- Involve internal IT resources to shadow consultants and take over ongoing technical support.
- Keep data extraction and cleansing in-house, as internal teams understand data accuracy requirements better than external consultants.
- Project Management
Outsourcing project management can be beneficial, as experienced ERP project managers bring structure and proven methodologies. However, having an internal Project Management Office (PMO) ensures long-term sustainability and facilitates future projects. A recommended approach is:
- Hire an experienced external ERP project manager.
- Build an internal PMO team that can support the upgrade and manage subsequent phases.
- Train internal staff on project governance to reduce reliance on external consultants in the long run.
- Functional Consulting
IFS functional consultants bring expertise in configuring and optimizing ERP solutions. Since most organizations lack in-house IFS functional knowledge before an upgrade, outsourcing is often necessary. However, knowledge transfer is essential to ensure long-term success:
- Engage external consultants for solution design and implementation.
- Assign dedicated internal workstream leads to collaborate with consultants.
- Ensure functional consultants document key decisions and provide detailed handover materials.
- Training
IFS Cloud training is another area that can benefit from outsourcing, especially when a large audience needs standard training materials and structured sessions. However, for niche processes, internal workstream leads may be better suited to provide training.
A practical approach is:
- Outsource training for high-impact, standard processes (e.g., purchase requisitions, mobile work order processing).
- Have workstream leads handle training for specialized business processes.
- Ensure training materials are well-documented and updated for future use.
Areas Best Managed In-House
- Business Process Knowledge
A successful ERP upgrade requires deep knowledge of existing business processes. Internal subject matter experts (SMEs) must be actively involved in designing, testing, and validating new processes. Companies should:
- Assign SMEs to work alongside functional consultants.
- Develop internal champions who understand the system and can drive future enhancements.
- Change Management and User Adoption
Change management is an ongoing process that extends beyond go-live. Employees are more likely to adopt new systems when internal leaders drive change initiatives. While external consultants can guide change management strategy, execution should be led internally.
- Establish internal change management leads.
- Communicate the benefits of the upgrade to end users.
- Conduct internal workshops to gather feedback and ensure smooth adoption.
Conclusion: Striking the Right Balance
A well-planned IFS Cloud upgrade requires a mix of in-house and outsourced expertise. While technical and functional expertise can be outsourced, companies must retain business process knowledge, project oversight, and change management internally. By taking a strategic approach to outsourcing, organizations can maximize efficiency while ensuring long-term ERP sustainability.
Summary of Outsourcing Recommendations:
| Area | Recommended Approach |
| Technical Skills | Outsource custom development and security setup; retain data extraction in-house. |
| Project Management | Outsource the PM role but establish an internal PMO for long-term project oversight. |
| Functional Consulting | Outsource functional design but retain workstream leads internally for knowledge transfer. |
| Training | Outsource high-volume process training; keep specialized training in-house. |
| Business Process Knowledge | Retain in-house with SMEs leading process improvements. |
| Change Management | Led internally with external advisory support. |
By following these guidelines, IFS customers can execute a smooth and effective ERP upgrade while ensuring their teams gain the skills needed for ongoing success.
How DANITPRO Can Help
At DANITPRO, we specialize in providing strategic ERP consulting for IFS Cloud upgrades, ensuring our clients strike the right balance between outsourced expertise and in-house capability building. Whether you need support with technical migration, functional consulting, or project management, our experienced team is here to help.
Contact us today to discuss how we can support your IFS Cloud upgrade while ensuring your internal teams retain the knowledge they need for long-term success.
