Wednesday, November 3, 2010

Understanding IT Outsourcing

The concept of outsourcing is nothing new. Since the dawn of industry, businesses have partnered with others to complete tasks otherwise out of reach. But what of today? We hear daily the stories of both success and failure associated with outsourcing––especially IT, thus bringing us to the topic at hand… What should a company consider when outsourcing IT?

First and foremost a company must understand the reasons behind the want / need for outsourcing. Is IT outsourcing a viable option as it pertains to business process? Does it meet the stringent requirements of company protocol? Will it make jobs easier? And finally, will it prove to be valuable, presenting an adequate ROI?

For many companies the idea of migrating systems externally, or at the very least the management of systems, is a frightening thought to say the least. Questions immediately arise regarding a ‘disconnect’ from business processes and those that would be responsible for daily, mission critical attributes. After all, when managed internally the ‘one-throat-to-choke’ concept of management is closer to one’s own door. If outsourced, can the same level of urgency be placed on the expectations of those immersed in the day-to-day action? If done correctly, any outsourcing from a management perspective should be seamless. 

Aside from that listed above, there is also the fear of ‘brand’ issues arising from IT outsourcing. Where does the company reside that now manages IT processes? Are calls that were once fielded in one’s own backyard now moving out of province, country, or continent? If so, how do timezones, cultural morays, and international socio-political actions effect brand recognition and trust? If a company’s protocol for dealing with issues, new implementations and projects is suddenly disrupted, both the internal and external attributes of the company can be tarnished.

Of course, the topic of jobs and job security arises. Will outsourcing mean the repositioning of resources to add more time to more important projects? Or, does it simply mean a loss of jobs internally? That answer resides internally at a management level, as reasons for outsourcing vary greatly from company to company.

Finally, what about the ROI? Can outsourcing IT infrastructure truly save money? Perhaps, but again depends on the company that the work is outsourced to. Inconsistent processes on the part of the external partner may actually hinder more than advance the plans associated with the decision to move resources externally. In any case, due diligence as it pertains to track records and references is always a key to finding the right company for the job.

If you are interested in finding out more about IT outsourcing, please feel free to contact a representative at Nitro IT Business Solutions. We would be happy to sit down with you to discuss all of the elements of IT and to create your perfect combination.

In the interim, visit our website at www.nitro.ca and our ROI calculator by clicking here to determine your savings by outsourcing IT to the national capital's top IT Business Solutions specialist.

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