by Oliver Schmid / 4954 IT Consulting, LLC

Imagine walking into your office on a Monday morning just to learn that your network has crashed or you get this call on a weekend or during your vacation.

Angry Network Admin

  • Do you know what to do at that time.
  • Will you be able to help or how long will your network be down?
  • Do you know the cost of such an incidence to the overall business?
  • How can you prevent such occurrences and make sure that this won’t happen to you or your organization?
  • IT Outsourcing is you answer.  But what is IT Outsourcing?
  • What can it do for me and what and how much do I outsource?
Outsourcing means that you are sourcing experts in their fields

The answers to these questions are: Outsourcing means that you are sourcing experts in their fields, so you and your business can concentrate on the field you are the experts in.  In the old days organizations used to select so-called single or full outsourcing deals. They outsourced a mega deal that provided them with a single provider for all their outsourced operations.

The question that arises here is, how can one be an expert in all fields? Would you hire somebody that claims to be your Accountant, your IT guy and your Distribution Manager at the same time?

Probably not. So why would would you hire on Outsourcing provider for all your organizational needs?

Here is where “Selective Outsourcing” comes into the play. Selective sourcing deals are much more effective and much more successful. Selective outsourcing deals are successful 77% of the time, versus 38% in single or full outsourcing deals based on a study.

A Forrester Study reveals that 88% of organizations today are in selective outsourcing deals. Selective outsourcing is used to optimize processes and to reduce cost.  At the end of the month when justifying your budget and the increase in outsourcing cost remember that 38% of cost savings come from process optimization and standardization. Labor will only be about 9%.  Yes your overall IT cost and budget may increase, but your overall cost of doing business will decline.

This means that during any outsourcing deal process optimization and standardization must be the main focus in order to be successful.

A main focus today is on innovation and you are wondering, how can I be innovative if I have everything outsourced.
This is while searching for the right partner to outsource to, the ability of this partner to be also your partner in innovation  must be considered and evaluated.  Many outsource providers today do not have this ability. Once signed up you are stuck with what they have to offer at this time for years to come.
Can innovation be bought you are wondering. Innovation may be bought from an external service provider, but in order to do so they need to understand your business and have the expertize to provide you with the right solution. They must have deep vertical business process and technology expertise.
It is important to know how much your service provider is investing in R&D and being able to help you with innovation.
You have to request innovation, because it does not come as part of the deal.
Below a great presentation on “Outsourcing your IT”  by
Orrin Klopper, MD of Netsurit discussing the benefits of outsourcing your IT.

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