Outsourcing of IT Services has emerged as the perfect solution for meeting the demands of not only the day-to-day IT functions but also the niche IT services of the concerned organizations.
The CMO Survey - Highlights and Insights Report - Spring 2024
The necessity of outsourcing it services by it directors
1. The necessity of Outsourcing IT Services by IT Directors
Outsourcing of IT Services has emerged as the perfect solution for meeting the
demands of not only the day-to-day IT functions but also the niche IT services of the
concerned organizations. Majority of IT directors are not inclined of outsourcing IT
services due to fear of losing control over their authority. Nevertheless, this fear is just
an anathema when one finds an IT service supplier or provider willing to work in a
perfect partnership and duly understands their clients/customers specific business
needs. Outsourcing of IT services as of now is seen as a beneficial strategy especially
for small enterprises where IT directors of these enterprises are openly embracing the
benefits of outsourcing with greater zeal when compared with their global counterparts.
A survey carried on by Computer Economics (an IT research firm focusing on strategic
and financial management of information systems) showed that about 27% of
businesses are now outsourcing application management services while 21% are
outsourcing database management services. Outsourcing of IT services is resulting in
benefits in terms of greater flexibility especially for companies that are expanding
rapidly, access to cost-effective expertise in the areas of techniques and programs,
using third party resources such as help desk that guides the existing IT staff to focus
on more productive business activities. In addition, there is significant savings in costs
for not having to invest in infrastructure and other licensing requirements.
Some of the immediate benefits of outsourcing of IT Services include:
•
Access to the latest/updated applications without investing in high up front
licensing fees,
•
Immediate availability of accredited or well-qualified engineers with relevant skills
and technical expertise without the necessity of training the existing staff,
•
Reduced risk of employee turnover taking their knowledge with them,
•
Data security is maintained as a high priority in remote as well as hosted data
centers,
•
Well defined Service Level Agreements or SLA’s enhances the quality of IT
services and reduction in downtime.
The best way to start outsourcing IT services is to enter into an IT partnership with
reputed IT service suppliers or service providers who demonstrate that they duly
understands their client businesses and clearly enunciates the value they can bring to
their clients’ (organizations’) operations. As of now, majority of Small and Medium
Enterprises (SME’s) are reaping the benefits of outsourcing their IT services with the
2. fear of neither surrendering nor losing their control by keeping a tight hold of their IT
service strategy.