You're considering outsourcing your IT. What benefits can you expect?

Outsourcing to low cost economies provide some benefit on baseline cost. However, in my experience, the contract is locked, and any change/upgrade/restructure/migration etc etc is not included. Also, you need to ensure you have ownership of the documentation, and you need to deal with a lot of attrition with the outsourced staff. In general though, if you go for the low cost option, you lose competitive advantage, Institutional knowledge. Instead of considering outsourcing, look at smart sourcing and build your own support center in a low cost economy.

Para considerar um outsourcing de TI, devemos levar em considera??o qual fornecedor iremos escolher e qualificá-lo, para que possa agregar valor aos servi?os prestados e n?o apenas considerar "custo".

Proceed carefully, and plan well! Most companies are seduced by the offshore labor rate, but most don't take into account the 'blended rate' of on-shore mgmt, nor the amount of time it takes to do knowledge transfer, not to mention the loss of that institutional knowledge... And another key point is that you LOSE control of your data and hardware, and should you need to wrest control back, you will have a hellacious time doing so, and it will be ridiculously expensive... I've seen many transformations start off rosy, but fail miserably!

In our current world where technology is embedded everywhere and often a key to success, it's imperative for IT leaders to be able to focus on strategic initiatives. In addition, today's newer IT employees want to work on emerging technologies, not be working on basic support. Outsourcing allows more focus on what can move the needle and allows proven providers to focus on keeping systems running.

While it is true outsourcing reduces costs, if you do not choose the correct provider from the start, you will pay a high price. Outsourcing providers are also trying to reduce their costs, just like you! You may end up having even more problems, costing you more due to project delays, or even worse, productions issues. Additionally, you may end up having a solution that it is not flexible nor scalable, forcing your organization to go through several "iterations" - actually, brand-new projects. This affects innovation: every attempt to evolve internal business process will hit a wall - delaying things, while your competition moves forward.

Uma coisa importante na terceiriza??o de servi?os de TI é diferenciar servi?o de projeto. Pesquisar e trazer novas tecnologias que atendam e gerem diferencial aos negócios n?o vira de uma terceiriza??o de servi?o e caso a empresa insista nisso o que ocorre é o compartilhamento do know how da empresa com o fornecedor da tecnologia e daí perde-se o diferencial estratégico da tecnologia. Novas tecnologias se consegue com P&D que é um processo da empresa e que em alguns casos demandará projetos para terceiros trazerem, demonstrarem e testarem tecnologias que a empresa poderá usar no futuro como um diferencial! Nada contra a terceiriza??o, mas n?o cobre que o terceiro fa?a seu negócio ser diferenciado usando uma nova tecnologia!

Any Sourcing is people business. Do not hand out your jewels, but focus on your differentiators. This opens potential to let well-trained, experienced specialists do something for you, where you save time and money.

The ability to leverage a broader set of skills than you would be able to recruit in-house for tactical work - eg if you were looking to refresh your telephony, a service provider would be able to bring in skills for a short period from their wider pool of resources, then move them on

This is very important factor in outsourcing your IT because you cannot possibly have every skill set in house. Outsourcing ensures you agree your SLA and its upto the service provider to ensure they have all the skills to support you.

A terceiriza??o de recursos em TI, principalmente no ambito executivo e com conhecimentos específicos, é uma das formas mais fáceis e rápidas de se conseguir os recursos certos, com conhecimentos certos, e prontos para performance. Depois da pandemia, cada vez mais vemos pessoas com conhecimento muito específico, trabalhando em projetos pontuais, apoiando empresas em suas necessidades de negócio mais latentes.

Every business have challenges and competition, if company has expertise in certain service or product which they are providing and outsourcing their IT gives them more time to focus on it the returns they would fetch would be great instead of focusing on all secondary segments like IT, finances, vendors, etc

Outsourcing can help businesses scale up or down quickly and efficiently without sacrificing quality. This is because outsourcing allows businesses to tap into a global talent pool, which can provide access to a diverse range of skills and expertise. As a result, businesses can quickly and easily scale their development teams up or down based on their needs, without sacrificing quality or efficiency. The flexibility can be achieved by hiring resources in different timezones and geographic areas. The teams can collaborate virtually and can be used to support business in multiple locations globally.

Market demands are as unpredictable as the weather, requiring businesses to be as flexible and scalable as possible. Outsourcing IT offers this agility, allowing companies to scale operations up or down with ease. I've advised numerous firms on leveraging outsourcing for this very flexibility, enabling them to navigate market changes seamlessly, without the weight of fixed costs and long-term commitments holding them back.

While this is all true, there is an additional consideration which is that your supplier is also running a business where they need to retain and attract talent and meet their earnings goals. It then follows that there is a cost associated with such flexibility. Therefore, agreements typically include minimum commitments, lead times for changes etc. While outsourcing certainly can provide more agility, we will need to plan and ensure our commitments are met so that we can continue to have a collaborative relationship with our key suppliers.

Outsourcing your IT also gives you more scalability and flexibility to adapt to changing business needs and market conditions. You can easily scale up or down your IT resources and services according to your demand, without worrying about hiring, firing, or training IT staff. You can also choose from different IT outsourcing models, such as project-based, staff augmentation, or managed services, depending on your budget, timeline, and scope. This way, you can have more control and agility over your IT operations and strategy.

We may outsource the responsibility to perform work or services to a supplier. However, we can never outsource accountability. While a supplier is contractually required to meet certain standards, as buyers we need to ensure that we establish reasonable oversight and have the appropriate insight into expected controls. If something happens, it is reputation and liability of the buyer that is at risk. Just look at Boeing as an example. They outsource key aspects of their manufacturing. However, very few of us think of who their subcontractor is when something happens to any of their planes. Another example: Drugs need to meet expected quality and this accountability does not shift when a third-party manufacturer is used.

Achei que as coloca??es desse artigo refletem bem o pensamento simplista que vemos em muitas terceiriza??es de TI! Primeiro Risco JAMAIS se transfere, no máximo se compartilha! Achar que o fornecedor de TI irá cuidar dos controles que a empresa que usa a Tecnologia deveria ter é no mínimo se fingir de morto durante um maremoto! N?o vai ajudar! Quando eu terceirizo servi?os comuns de TI eu ganho novos tipos de riscos! Risco do fornecedor falir, risco de n?o entregar o servi?o, risco de n?o ter qualidade no servi?o, risco das penalidades insuficientes de SLA e outros. Gerir os riscos de TI é um processo que é parte da gest?o integrada de riscos corporativos e até operacionais! Risco do terceiro de TI é mais um risco a adicionar!

In our digital age, risk management in IT is paramount. Outsourcing partners specialize in navigating this minefield, armed with robust security measures, compliance knowledge, and continuity plans. My experience has shown that outsourcing can fortify a company's defenses, safeguarding against threats and ensuring business continuity. It's about peace of mind, knowing that your operations are secure and resilient.

You still own the responsibility in the end, it's your business that will suffer if things go wrong. Have stringent penalties in the contract for failures and non-compliance.

Outsourcing IT mitigates risks by transferring responsibility for issues like security breaches and system failures to the provider. Benefit from their expertise in risk management, backup plans, and security policies, safeguarding data, assets, and reputation from IT threats.

At the heart of every business is its customers. The quality and speed of IT services are pivotal to customer satisfaction. Outsourcing can supercharge your IT capabilities, enhancing service quality and efficiency. I've witnessed businesses revolutionize their customer experience through outsourcing, delivering innovative solutions and services that not only meet but exceed customer expectations.

Un proveedor de TI externo puede ofrecer un servicio de atención al cliente de alta calidad, con tiempos de respuesta rápidos y soluciones personalizadas. Esto puede mejorar la satisfacción del cliente y aumentar la fidelidad a la empresa.

Make sure your customer service delivery is well understood and that the outsourcer knows their role within it. You need strong management and oversight of this, it's your customer to win or lose.

Outsourcing IT enhances customer satisfaction by ensuring up-to-date, reliable, and secure systems. Improved IT services lead to better customer experiences, trust, and loyalty, driving business growth. However, successful outsourcing requires thorough planning, evaluation, and clear communication with providers. Monitor and evaluate their performance to maximize benefits and achieve IT objectives.

Try to understand a basic formula i use: Up-to-date + reliable IT = smooth operations, fostering trust and confidence. Outsourcing frees up your internal team to focus on core business activities, potentially leading to increased efficiency and productivity. Asia is full of technical experts who love to offer their services at reasonable cost. if you offering superior IT services differentiates your business, attracting and retaining customers.

IT systems are now the foundation, the basis for every company's own business. And there are certainly always several reasons for the decision to outsource IT. Growing IT landscape: As a company grows, so does its IT landscape. Additional IT specialists are needed. To ensure the implementation and maintenance of ITSM processes, security requirements and new business requirements and so one… This leads to cost for maintaining the IT landscape and the next problem is Lack of skilled Experts. Companies are in direct competition with IT-service providers on this rare Experts. Focus on the core business: By outsourcing IT, the company can concentrate on its core business

Will the company become better or will they keep things just ok? In our recent experience two of our long term clients have had exit events with 10x + business valuations. The right service provider will help your business grow, securely.

I would add that outsourcing IT for the first time or to a new provider can bring an additional benefit - a fresh set of eyes to compare the organisation's business needs with the current set of IT systems/services in place. Are all current business requirements being met? How are these requirements likely to change over time? What migration/adoption projects should therefore be in the IT change roadmap? Such periodic reviews should already be in place. However, a change from in-house to outsource or a change of outsource provider is a great opportunity for a 'sanity check'!

Before everything all, think about the real reason you plan to externalize : If it’s for cost reasons, remind you that you cost of reference are probably wrong If it’s to take control of something you don’t drive properly, forget it, suppliers will make you pay for either the transformation or the cost of lack of control If it’s to free resources to focus them on new strategic projects, don’t forget to maintain a minimum of internal resources to drive the providers and maintain them under control

Outsourcing, especially if done across geographical zones, can allow for coverage across the 24 hour day. “Follow the sun” allows for IT service to be available to staff even outside of what would be considered business hours. Today’s workplaces incorporate flexibility that sees workers working odd hours, weekends and even on holiday. Also organizations can span the globe hence outsourcing ensures adequate support in each time zone where the organization has presence or customers while cutting down on on-call, and overtime IT staffing costs.