登录查看更多内容

How do you choose between cost savings and innovation when outsourcing IT?

由人工智能和领英社区提供技术支持

Outsourcing IT can be a strategic move for your business, but it also comes with trade-offs. How do you balance the benefits of cost savings and innovation when choosing an outsourcing partner? In this article, we'll explore some key factors to consider and some best practices to follow.

本文章的要点总结

Define your goals clearly:

Start by identifying your core IT needs and long-term objectives. This helps you choose an outsourcing model that aligns with both cost savings and innovation.### *Evaluate potential partners:Assess outsourcing partners based on their expertise, reputation, and alignment with your company's culture. This ensures a balanced approach to achieving both operational efficiency and innovative growth.

本摘要由 AI 和以下专家提供支持

1 Cost savings vs innovation

One of the main reasons to outsource IT is to reduce costs. Outsourcing can help you save on salaries, infrastructure, training, and overheads. However, cost savings should not come at the expense of innovation. Innovation is essential for staying ahead of the competition, meeting customer needs, and creating value. Therefore, you need to find an outsourcing partner that can deliver both cost savings and innovation.

添加您的观点

Achint Arora

Partner at Everest Group | Apps & Engg services deal and pricing analytics
举报内容
I don't see innovation and cost savings as counter-intuitive to each other. A lot of Big transformation projects are focused on getting cost savings for the buyers. Ultimately, all initiatives need to create value for the clients that make positive impact to their organization

已翻译

赞

2 Assess your needs and goals

Before you outsource IT, you need to have a clear vision of what you want to achieve and how you want to measure success. What are your core competencies and competitive advantages? What are your IT challenges and opportunities? What are your short-term and long-term goals? By defining your needs and goals, you can identify the scope, scale, and type of outsourcing that best suits your business.

添加您的观点

Manoj Chandra Jha

Sales Executive- Market Growth | Sustainable Business Developer | Inclusion Champion | Market Explorer |
举报内容
The decision between cost savings and innovation in IT outsourcing should be a strategic one that aligns with your organization's broader goals and circumstances. It may also involve trade-offs and a dynamic approach that adapts to changing business needs. CIO should align decision with organization's overall strategic objectives. Are you primarily looking to reduce operational costs, or is your main goal to drive innovation and gain a competitive edge in the market?

已翻译

赞

3 Choose the right outsourcing model

Outsourcing models offer varying levels of cost savings and innovation. For instance, staff augmentation is a great way to fill skill gaps, increase flexibility, and lower costs. However, it doesn't usually provide much in terms of innovation because you still need to manage and direct the work. Alternatively, project-based outsourcing can help you access specialized expertise, improve quality, and speed up delivery; though it may not produce much cost savings since you need to pay for the project scope and timeline. Finally, managed services can optimize performance, reduce risks, and free up resources for your core business; though it may not offer much innovation since you must depend on the provider's standards and practices.

添加您的观点

Achint Arora

Partner at Everest Group | Apps & Engg services deal and pricing analytics
举报内容
Outsourcing models reflect the sentiment of control and criticality. Buyers who prefer control over their delivery prefer to do things in staff augmentation, while those who don't have inhouse capabilities or believe in the credentials of their suppliers and the value the suppliers can create can do more work in managed services format and are more willing to experiment with different commercial models

已翻译

赞
Ivor Evans
举报内容
Perhaps even before thinking of outsourcing senior management should consider if they actually have the capabilities in-house to do a far more effective job - if only staff were empowered to change, perhaps radically, levels of responsibility and the manner in which current tasks are carried out.

已翻译

赞

4 Evaluate the outsourcing partner

Once you have decided on the outsourcing model, you need to find a reliable and reputable outsourcing partner. To evaluate their credibility, consider their experience and reputation, skills and capabilities, costs and benefits, and culture and communication. Their credentials, certifications, previous projects, core competencies, tools and technologies, rates and fees, guarantees and warranties, value-added services and benefits should all be taken into account. Additionally, look into how they communicate with you, their values and principles, how they handle conflicts and changes, as well as how well they align with your culture and vision.

添加您的观点

Ivor Evans
举报内容
You must also consider that a contract will be let and therefore the invitation to tender is of primary importance, so it's fine to 'look into how they communicate, their values and principles and how they manage conflict' but these issues are going to have to be addressed in contractual terms so fluffy requiremets and fluffy proposals simply will not do. They will not be worth the paper they are typed on.

已翻译

赞

5 Establish a clear contract and SLA

After you have chosen an outsourcing partner, it's essential to formalize the relationship with a clear contract and service level agreement (SLA). The scope and objectives of the outsourcing project or function should be defined, as well as the roles and responsibilities of both parties. Additionally, deliverables and milestones, quality standards and performance indicators, payment terms and conditions, dispute resolution and termination clauses, and intellectual property and confidentiality rights should all be included in the contract and SLA.

添加您的观点

Ivor Evans
举报内容
Don't think in terms of SLAs, think of XLAs! Experience Level Agreements (XLAs) are a reimagining of SLAs that focus on what’s most important to end-users. Within these, XLA targets are end-user-centric metrics and key performance indicators (KPIs) that focus on the perceived quality of IT services and support. They measure the performance of IT by quantifying the end-user experience and IT service outcomes. Ultimately, XLAs measure performance in outcome and value terms, whereas SLAs usually focus on operations and outputs.

已翻译

赞

6 Monitor and manage the outsourcing relationship

Finally, you need to monitor and manage the outsourcing relationship to ensure that it meets your expectations and goals. This includes regular and effective communication with the outsourcing partner, tracking and measuring progress, providing feedback and guidance, resolving issues, and celebrating successes. By following these best practices, you can balance the cost savings and innovation that outsourcing can offer for your business.

添加您的观点

Ivor Evans
举报内容
Exactly how you are going to measure the success of the chosen partner will have to be written into the contract. Once again, 'fluffy' is not allowed!

已翻译

赞

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Ditio Syed-Haq

Chairman & Creative Director, Dhaka Television, Sabyasachi Multimedia & The Syed-Haq Foundation | Experienced in Change Management, Technology, Strategy and Leadership.
举报内容
Always remember that innovation comes at a cost. You cannot compare two outsource providers based on cost alone. It is important to see their portfolio of products and submit a carefully worded RFP to prospective clients to judge their creative and innovative strengths. Ask for examples where they have put innovation to work and how they approached it. This will quickly weed out the factory-line providers and give you a subset of likely candidates. Next thing is to check for their portfolio and, finally, a one on one conversation to judge their eagerness, ability to take action and dedication to the job at hand.

已翻译

赞

IT Outsourcing

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

How do you choose between cost savings and innovation when outsourcing IT?

1

2

3

4

5

6

7

1 Cost savings vs innovation

2 Assess your needs and goals

3 Choose the right outsourcing model

4 Evaluate the outsourcing partner

5 Establish a clear contract and SLA

6 Monitor and manage the outsourcing relationship

7 Here’s what else to consider

IT Outsourcing

给文章评分

感谢您的反馈

更多IT Outsourcing相关文章

更多相关阅读内容

How do you choose between cost savings and innovation when outsourcing IT?

1

2

3

4

5

6

7

1 Cost savings vs innovation

2 Assess your needs and goals

3 Choose the right outsourcing model

4 Evaluate the outsourcing partner

5 Establish a clear contract and SLA

6 Monitor and manage the outsourcing relationship

7 Here’s what else to consider

IT Outsourcing

给文章评分

感谢您的反馈

查看其他技能