Shifting Business Paradigm Driver to Infrastructure Outsourcing
Article by Govind Desikan
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IT Outsourcing can be a very effective alternative to using internal information technology and resources - risk-wary, dynamic organizations are connecting with experts who can quickly put them on the path of growth
The IT infrastructure that makes the business run is well oiled machinery that goes into a change mode when business decides to focus on the customers and business innovation. Essentially it means three things: shift spending from operations to innovation, enabling agility/flexibility, and managing risk.
The core competencies of any business that IT should help enable are: enhancing solution/service competitiveness, generating revenue from new business development, and streamlining existing business processes. And as enterprises return to expansion, they will prioritize revenue growth over cost cutting by focusing on maintaining competitive advantage, retaining and growing customers, attracting and retaining talent, and improving efficiency to intrinsically reduce costs.
The key is business efficiency –in operations, in financial management and IT.
How does this impact the IT department? Successful CIOs know they must focus on IT efficiency to enable rapid response to changing business requirements. IT virtualization, consolidation and IT outsourcing are approaches that can help CIOs achieve IT efficiency, and in turn improve resource utilization and reduce costs while streamlining their IT operations.
Businesses today are strapped with the need to have a scalable, secure and highly available computing infrastructure without increasing costs at the same time mitigate complexity in networks and systems and technology obsolescence. These are growth organizations that require IT to be on top of its growing needs such as expanding geographical reach and faster time to market. These organizations run their business in an environment challenged with issues pertaining to hiring and retaining skilled IT staff as well as an inherent and urgent need to be agile and flexible.
How does the CIO address these challenges effectively? IT Outsourcing can be a very effective alternative to using internal information technology and resources, but a full understanding of the objectives and options are required to make that decision. The key to a successful outsourcing decision is the cost-benefit analysis, a mixture of the hard dollar costs and the less tangible soft costs, qualitative measures of needs, risks, and benefits.
It is here the real action starts.
More risk-wary, dynamic organizations are connecting with experts who can quickly help them in achieving their objectives – the strategic business objectives charted by moving from cost-containment mode to expansion mode.
By shifting some of the IT burden and assimilating new skill sets and services from external partners – in everything from datacenter operations to application development to desktop management – CIOs and other IT leaders are meeting their companies’ most pressing needs while laying the groundwork for future growth.
First of all, it is important to analyze and understand the drivers leading up to this change – is it the need for rapid, strategic change or drafting a fast-path to such change by enabling them to tap into new business-enabling technologies or is it to expand their internal skills, and acquire and deliver new services quickly?
Once you have answered these simple questions, the first steps to IT outsourcing starts. The next in this blog series will talk about the following:
- Setting Course for IT Outsourcing – Key Drivers and Goal Setting
- Outsourcing as a Transformative Tool to your Business
- Choosing the Right Partner for Outsourcing