Sharing advice about outsourcing network support and IT solutions from company to company is a helpful way to get the most effective outsourcing team. In the proceeding article, advice is shared about what is the best way to go about working with you IT systems to save the most money.
reprinted with permission from HP
Stephen Minton, vice president, Worldwide IT Markets and Strategies, IDC, offers insight on how outsourcing can help you ride out the economic downturn—and maybe even gain a leg up on the competition along the way.
Rising gasoline prices. Falling consumer confidence. Subprime mortgages. Inflation. Budget cuts. Currency fluctuations. Floods, droughts and crop shortages. Each day’s news seems to add to the torrent of challenges heading our way. No business is immune—but outsourcing can offer a way to leverage technology to help stem the negative tide.
Here, IDC’s Stephen Minton shares his expert views and experience on the subject—and puts some useful perspective around when it does and does not make sense to consider outsourcing in today’s volatile economic climate.
Recession. Downturn. Call it what you will—what’s the impact on business decisions to outsource or buy IT services?
Historically, when faced with an economic downturn, companies do one of two things:
First, they look to reduce costs. Here outsourcing—with its potential to reduce overall costs—is one way you can reach that goal.
Secondly, as talk of a recession continues and nervousness about the economy increases, many companies start putting the breaks on discretionary or ,performance IT spending—the “new” projects in queue, if you will. Projects such as software development around new applications often fall victim here, as projects are put on hold or suspended all together.
Agreeing that outsourcing is a way to cut costs, how should companies approach the decision to outsource? And are there some areas better suited to it than others?
Done rapidly and rationally, outsourcing can certainly generate rapid cost benefits. But do not rush down the path to outsourcing.
You might consider outsourcing for an area that is more commoditized from a skills and tools point of view and has already gone through a certain amount of optimization. Also choose a project that you already have a good handle on internally, because the last thing you need is disruption at the technology level. The desktop space and end-user workplace are good examples here.
What areas make the least sense for outsourcing right now?
You should move slowly in any area where you don’t have much experience. Rushing too quickly to outsource newer strategic areas—such as software as a service—can be a risky proposition
