The best way for the IT director to address the concern of other departments about the outsourced services is to develop a comprehensive vendor management plan. A vendor management plan is a document that details how the IT director and the vendor will work together to achieve the objectives and expectations of the contract. A vendor management plan can include the following elements1:
Scope of work: This defines the services, deliverables, and outcomes that the vendor will provide, as well as the roles and responsibilities of both parties.
Service level agreements (SLAs): These specify the performance standards, metrics, and targets that the vendor will adhere to, as well as the penalties or rewards for meeting or exceeding them.
Operational level agreements (OLAs): These describe the internal processes and procedures that the IT director and the vendor will follow to support the SLAs, such as communication, escalation, reporting, and issue resolution.
Risk management: This identifies and assesses the potential risks that may affect the delivery of the outsourced services, such as security, compliance, quality, or continuity, and defines the mitigation strategies and contingency plans to address them.
Governance: This establishes the governance structure and mechanisms that will oversee and monitor the vendor relationship, such as steering committees, audits, reviews, and feedback.
A comprehensive vendor management plan can help to ensure that the outsourced services are delivered successfully by providing clarity, transparency, accountability, and alignment between the IT director and the vendor. It can also help to address the concerns of other departments by demonstrating that the IT director has taken adequate measures to manage and control the vendor performance and risk. Additionally, a vendor management plan can help to foster a collaborative and trusting relationship between the IT director and the vendor, which can lead to improved service quality, efficiency, and innovation.
1: 3 Steps to Improve Strategic Vendor Management

When conducting a risk assessment in support of a new regulatory requirement, the IT risk committee should first consider the risk profile of the enterprise. Understanding the overall risk landscape, including existing vulnerabilities, threats, and the impact of potential risks, provides a foundation for evaluating how new regulatory requirements will affect the organization. This initial step ensures that subsequent risk management efforts, including compliance activities, are aligned with the enterprise's risk appetite and strategic objectives. While cost, system readiness, and operational disruption are important considerations, they should be evaluated in the context of the enterprise's risk profile.

A cost-benefit analysis is a process that compares the costs and benefits of a decision or an action, such as outsourcing non-core IT processes. A cost-benefit analysis can help the enterprise evaluate the feasibility, profitability, and sustainability of outsourcing, as well as identify the potential risks and opportunities. A cost- benefit analysis can also help the enterprise determine the optimal level and scope of outsourcing, and select the most suitable outsourcing partner. A cost-benefit analysis should be the first step before issuing a formal request for proposal, establishing service level metrics, or updating resource allocation policies. References := The Outsourcing Handbook A guide to outsourcing - Deloitte United Kingdom, page 10 Five Tips For Outsourcing Business Processes Effectively In 2021 - Forbes

A business impact analysis (BIA) is a process of predicting the organizational and financial impact of business disruptions, such as vendor system failures. A BIA can help the CIO to prepare for this concern by identifying the critical business processes, the potential effects of disruption, and the recovery requirements and strategies. A BIA can also help the CIO to prioritize the resources and actions needed to restore the normal operations as quickly as possible1. A BIA is an essential component of business continuity planning (BCP) and disaster recovery planning (DRP)2.
An IT balanced scorecard is a tool that measures and monitors the performance of IT in relation to the strategic goals and objectives of the organization. An IT balanced scorecard can help the CIO to evaluate the effectiveness and efficiency of IT, but it does not address the impact of business disruptions or the recovery plans.
Service-level metrics are indicators that measure and report the quality and availability of IT services delivered to the customers or users. Service-level metrics can help the CIO to track and improve the service delivery, but they do not assess the impact of business disruptions or the recovery plans.
An IT procurement policy is a document that defines the rules and procedures for acquiring IT products and services from external vendors. An IT procurement policy can help the CIO to manage the vendor relationships, contracts, and risks, but it does not analyze the impact of business disruptions or the recovery plans. References: How To Conduct Business Impact Analysis in 8 Easy Steps. The Top 10 Vendor Risks & How to Manage Them. What is FMEA? Failure Mode & Effects Analysis. Definition of Business Impact Analysis (BIA). [IT Balanced Scorecard: Definition, Frameworks, Examples]. [Service Level Metrics:
Definition, Types, Examples]. [IT Procurement Policy: Definition, Components, Examples].