How to Benefit from IT Outsourcing？
Outsourcing internal IT functions is an emerging trend following the economic crisis
The outsourcing of IT operations has developed into an important industry amongst public and private sector companies globally. As with the outsourcing of any operation, both businesses and clients can gain benefit from outsourced IT services. Nevertheless, there are also some traps that companies should be aware of and try to avoid if possible, when they are considering this approach.
During the economic downturn, the financial constraints placed on organizations have become one of the reasons which lead to increase in IT outsourcing. Without doubt, both large and small businesses across the world are seeking for the ways to cut costs. Therefore, outsourcing can provide a means by which to provide the same level of service — or even improved service levels — while keeping costs down.
WEIGHING THE OPTIONS
Neil Stephenson, CEO of Onyx Group and the specialist business and IT solutions provider, insists on that organizations of all structures and sizes are gradually aware of the benefits of IT outsourcing and shifting their attentions to this model to provide their IT needs.
“In-house IT management is complicated, time consuming and requires the finance, resource and capacity that businesses, especially following the recession, simply don’t have — something which is not set to change any time soon,” explained by Stephenson.
Time and budget can be freed up when removing such a function from within a company, which can be shifted to the core areas of the business. It is very important that before the decision is taken all the risks and alternatives should be weighed up.
Iain Monaghan, cooperator and outsourcing expert of law firm Pinsent Masons, emphasized the importance of planning in the outsourcing of any operation in his report, ‘Developing Outsourcing Strategies’ (September 2009). Monaghan brought forward the factors that should be paid attention to prior to taking the decision to outsource.
Assessing the risks and considering the alternatives are the most important factors among those. The two, of course, are linked. In weighing up the alternatives to outsourcing, you are also likely to be weighing up the risks involved.
“Some organizations looking to outsource give their existing in-house departments the opportunity to put forward a competing bid, while others conclude that the benefits available from outsourcing could be obtained more economically by changes in internal processes; for example, increased standardization,” says Monaghan. By the way of citing IT as an example, he adds that an organization needs to fully understand the internal function that is to be outsourced before going ahead.
“Several studies of projects in the public and private sectors have shown the danger of trying to implement an ambitious new IT system when the users who are to operate that system are not organized in the way that was assumed by its designers,” he adds.
[Source] Software Outsourcing Blog Section: http://www.unisoftchina.com
Processing your request, Please wait....
