Outsourcing Information Technology

February 25th, 2009 No Comments   Posted in Uncategorized

Information Technology (IT) is a critical part of the business process that can require technical competence beyond the scope of the current management. In this case, a third party should manage the IT function.

Here are some of the reasons why outsourcing is a better choice for managing the IT department, rather than maintaining IT internally:

  • Advantages
    • IT costs become more visible as all billable hours must be accounted for
    • Outsourced services are utilized as needed, and organizations pay only for what services are actually used
    • An outsourced IT department can reduce costs by utilizing its extensive knowledge base of various IT specialists, as opposed to an organization maintaining a comprehensive in-house staff
  • Outsourcing Benefits
    • Outsourced companies make performance reports and measurements available to their clients
    • Communications between business functions improve at all levels and ensure that IT resources are not being misused
    • Outsourced companies can provide 24×7 support at a fraction of the cost
    • Outsource staff tend to drive planning and budgeting improvements
    • Service Level Agreements (SLAs) can be established
  • Staffing Benefits
    • Staffing levels can be adapted quickly to client requirements, thereby avoiding gaps due to attrition, business growth or economic downturns
    • IT consultants are fully trained on the latest technologies
    • Retention of technically qualified in-house personnel is more difficult when external job opportunities are rapidly changing
    • Continuous IT support coverage without having to rely on only one or two key people
  • Advantages Outsourcing
    • Outsourced services use established standards for equipment and software requirements, saving time and money
    • Outsourced services use approved lists of reliable vendors, which improves the quality of goods and services received
    • Client can Focus on Core Business Competencies
    • Client management can concentrate on core competencies and revenue generating activities, while leaving technology management to IT professionals
    • Management of non-essential core functions is transferred to the outsourcer