Introduction
Outsourcing is becoming one of the most rapidly growing
industries. Information system departments are being asked to
support an ever increasing array of hardware and software with
limited resources. Two opposite view are evident when outsourcing
is mentioned:
Future trend, driven by a need to reduce overhead and focus on
core competencies.
Disastrous consequences in the future due to breaking up the
company due to a lack of money, vision and resources.
Netmation can help provide a review of your systems to determine
first if major cost improvements can be made without outsourcing
major pieces of your business. If proper analysis and planning is
achieved there can be benefits realized from outsourcing certain
pieces of the puzzle.
Benefits
Companies are no longer asking, "Is this the right move?" but
rather, "What should we outsource?" Resons for the sudden increase
in outsourcing companies are electing to do generally are
initiated do achive some of the following benefits:
- Improve company focus
- Protect against technological obsolescence
- Reduce users responsibility
- Gain access to world-class capabilities
- Accelerate the benefits of re-engineering
- Share risks
- Free non-capital resources
- Make capital funds available
- Reduce operating costs
- Seek cash infusion
- Resources not available internally
- Improve technical expertise
- Function difficult to manage
More and more companies are outsourcing due to tight budgets and
finding their small staffs strained to keep up with the rapid
changing technology. Outsourcing, once thought appropriate only
for large companies is now finding its way into small and medium
size corporations as well.
Types of Outsourcing
Outsourcing can affect all areas of Information Systems. When
outsourcing first became popular many companies chose to outsource
the entire corporate Information System function. Since then
companies have been much more selective and outsourcing specific
functions and applications.
Telecommunications and Local Area Networks
Outsourcing telecommunications provides flexibility to enable
companies to take full advantage of new and improved services.
Help Desk
An informational source for end users where they can achive a
single point of contact for all support services.
Software Development
Outsourcing development projects has several variants. How much of
a project is outsourced can differ for each individual project. A
single phase of a project (e.g. planning, design, development,
maintenance) can be outsourced or the entire projects
responsibility can be assumed by the outsourced application
development team.
Mainframe Data Processing
Mainframe outsourcing often will take on the added responsibility
of hardware ownership to help leverage resources with additional
clients.
Netmation can help you analyze your existing operations and make
recommendations on what activities would benefit from outsourcing,
if any. Many times we have seen companies sign large oursourcing
contracts only to regret the loss of control for certain aspects
of the business. Though outsourcing can achieve benefits often too
much is contracted out when cheaper and more efficient means could
of easily been implemented in-house.