What is IT outsourcing?
IT outsourcing describes the use of external IT services provider by an organization. It can be used for maintenance support and software development. It started in the late 1950s and third-party service providers were Burroughs, Control Data, Univac and IBM. This practice is used to reduce costs and management overhead, improve flexibility and increase service levels.
IT functions
The most popular functions that can be outsourced by enterprises and organizations are e-commerce/website systems, disaster recovery, and data center operations. Desktop support, help desk, e-commerce/website management and data center operations are the main functions companies ask for but application development is the most frequently outsourced. The help desk function is especially used par large organizations. Some service provider just offer application development and maybe website systems. It is better for you to contract service from a company like Razor Theory which can provide each function above.
IT Outsourcing Pros and Cons
The main benefits of outsourcing include:
- Access to world-class IT experiences, resources and skills
- Reducing IT costs
- Certainty of future IT spend
The downsides of outsourcing IT include:
- Culture clashes between the service provider and customer
- Lack of flexibility in received services
- Loss of control over a crucial business service
IT Outsourcing planning
In order to ensure successful execution of IT outsourcing, organizations have to take several steps:
- Creation of a great business case to support the decision to outsource
- Know and understand everything about your current IT operation and what you want to achieve by contracting IT service from a service provider
- Know and understand everything about your IT organization and its cost base, in order to evaluate whether the prices provided by the service provided are worth it
- Think about what form of organization is best suited to meet the objectives of your company
- Legally, be ready to negotiate the details of the outsourcing transaction in order to have the terms documented in the services agreement
IT Outsourcing problems
Outsourcing IT functions is attractive in terms of efficiencies and cost savings but it can cause problems. Indeed sometimes communication difficulties arise in offshoring situations, while loss of institutional knowledge can be a real problem.
The other problems you can encounter include:
- Lack of required skills
- Post-contract processes and decision rights not understood
- Inability to meet pent-up demand for services
- Changes don’t last
- Difference in expectation levels
IT Outsourcing leading companies
Here are some companies leading in IT outsourcing:
- IBM
- HP Enterprise Services
- Unisys
- Capgemini
- Lionbridge
- Accenture
- CSC
- NIIT Technologies
- Wipro Technologies
- Infosys Technologies
- ISS
- Razor Theory
- CGI Group
- Sodexo
- Convergys
- MindTree
- Williams Lea
- Aegis
- Inspur
- ACS
- CMP Braxis
- Genpact
- Tech Mahindra
- Intelnet Global Services
- Williams Lea
As you can see there is many companies leading in the domain. Now if you want to outsource services for your enterprise or organization, you are well documented and you have many companies to choose. But it will better for you to give a try at Razor Theory because they do a great job.