In recent years, chief information officers may have noticed that an increasing number of companies are opting to move their on-site information technology functions to third-party service providers. With advanced solutions such as cloud computing becoming ever-more popular in the world of business, organizations are likely encountering a number of benefits stemming from this switch. At the same time, though, seasoned IT professionals have probably observed instances in which outsourcing these critical functions – and the data that goes with them – can pose some problems that they then have to mitigate.
There is no denying that outsourcing IT offers its fair share of perks, especially for businesses on a budget. In general, companies that are trying to support in-house tech departments could be wasting a substantial amount of valuable resources. In all likelihood, CIOs are aware of all the money and time that organizations have to pour into supporting on-site IT.
For instance, think of all the tools that companies have to compile to ensure that their operations are functioning optimally. It is not enough to purchase a wide array of infrastructure, deem a business ahead of the innovation curve and then let everything be. Instead, organizations have to maintain any technology that they choose to adopt, making repairs, replacements and updates whenever necessary. To accomplish this, corporations cannot appoint just any old professional to take care of the regular, sophisticated maintenance tasks that need to be completed. They have to hire and retain highly skilled professionals who are able to handle the most cutting-edge tools on the market, continuously recruiting new talent to meet rising demands that their organizations may encounter.
Less of a hassle means less control
Whether it be keeping up with the machines or the manpower, businesses may find that this never-ending innovative arms race exhausting – in terms of both finances and energy. Because of this, more and more organizations are trying to cut themselves out of the IT equation, depending on outsourced resources provided by third-party companies that can do all the dirty work for them.
While IT professionals themselves have recognized the value of outsourcing tech tasks to drive efficiency throughout their corporations without taking a lot out of their budgets or staff members, this option is not a panacea for all their innovation woes. In fact, handing over the reins to outsiders may put even more stressors on business executives’ plates, as issues can still arise, but organizations that have forfeited their control cannot sort out themselves.
What causes problems for companies relying on outsourcing for their IT functions? Computer Weekly presented a couple of scenarios that have proved troublesome for organizations transferring their tech tasks to external service providers.
One of the most common instigators of issues, for example, is pushing cost-cutting measures too far and giving up too much control. The source explained that some companies may be too trusting of third parties, letting almost all their power slip through their hands by committing to both outsourcing and offshoring for their IT practices.
Pick an approach
Computer Weekly elaborated and cited an IT professional working in the UK’s banking sector, who advised that businesses choose one cost-saving strategy at a time. If companies decide to outsource their data storage and other tech functions, then they should depend on a service provider that is domestically located. On the other hand, if they opt to offshore these operations, then they may want to do so in-house. This means that they would have to invest in establishing an outlet for their organizations in locations throughout the globe. By selecting areas that boast lower labor and operating costs, they can still save resources that they can then use in other areas of their businesses.
Bearing this in mind, CIOs may want to provide guidance to the major decision-makers at their firms, advising them on which choice – outsourcing or offshoring – may better suit their organizations’ needs. By determining the best course of action, businesses may be able to make a wise strategic selection that enables them to reap the benefits of these IT trends without losing complete control over these functions.