Guide to IT Outsourcing
All that you wanted to know about outsourcing, but didn’t want to ask!
Why Outsource?
Outsourcing IT is usually based on one (or more) of the following reasons:
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Dedicated in-house IT function is too expensive
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Staff are spending too much time on IT and not enough time of the core business
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The in-house IT team are not delivering results
While these reasons are all valid, we’d urge you to consider outsourcing in a different way. You’ll find value through this approach, but possibly not where you think!
Costs savings for smaller networks, for example, may be negligible or non-existent. If a one person reduction is made to a three person support team through outsourcing, then it’s likely that an outsource agency will cost less than one in-house staff member.
However, what you will have access to is a wide ranging skillset. Additionally all this know-how is independent and totally focussed on the benefits that the technology can bring to your business.
How much should you Outsource?
You need to think about exactly how much of your IT function you’re looking to outsource. You may not want to simply hand everything over. This could mean that you relinquish control of parts of your business that provide genuine competitive advantage. Equally you don’t want to hand over mundane tasks if these could be comfortably managed in-house.
Concorde have a pragmatic approach to outsourcing. First you need to consider what has led you to think about outsourcing. If it’s that your support staff are using unreliable PC’s then it may be time for an equipment upgrade (an outsourcer would be unlikely to add value to this situation – indeed beware of one who claims they can!).
Once you’ve done a health check on your system, look for the elements that you want to retain control over. These may be key business functions and/or other elements that run smoothly. This should then leave you with areas in which you are under-skilled, or need mission-critical assistant (common culprits include e-mail, antivirus and back-up). If you’re undertaking a new venture you may also wish to outsource technology until you have expanded your in-house team.
Heads-Up Questions
Think about these questions around responsibility when you’re implementing an outsourcing relationships:
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Who will get us up and running again in the event of a fire?
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Is there anyone else capable of running the network if my IT manager resigns? And is there sufficient documentation to enable someone else to stand in?
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Is there a handover plan for the end of a one-year outsource contract?
To find out more on whether outsourcing is right for your business then read our guide “Do I need to Outsource”. Click here to find out more about our extensive range of outsourcing options.
Your Concorde Advisor is at the end of the phone to answer any questions, so call us today on 0333 240 8166.