Benefits of Outsourcing Your IT Operations
Outsourcing your IT administration and maintenance is like using electricity - you don't need or want to manage the power station - you just want to flick on a switch when you want. All IT infrastructure requires maintenance, and users require access and functionality in order to perform their daily tasks.
How Outsourcing Provides Measurable Competitive Advantages
Below are examples for the Company; the Finance Department; and the IT Manager to show simply how Outsourcing provides a measurable competitive advantage.
The Many Benefits to the company from Outsourcing
- Reduces Cost:
The direct and indirect cost of an internal, dedicated internal resource management infrastructure is generally 25 to 30% higher than Outsourcing.
- Increased Staff Productivity:
Internal resources can only address one requirement at a time. Hence two, three, four or even more concurrent requirements lead to lower productivity for users and eventually you run out of hands.
- Improved Staff Morale:
When issues are dealt with quickly, efficiently and with a level of consistent, unbiased service, your staff have a much more pleasurable experience than if they have to wait for hours or even days to receive assistance.
Quality outsourcing companies provide detailed reports on all network activity, giving management the information it needs to make informed IT decisions.
- Increased ROI:
You receive literally a Million Dollars worth of technical expertise for less than the cost of one employee.
Staff training requirements often aren't noticed or addressed. Outsourcing companies spend thousands of dollars a month on specialised training to ensure our Engineers skills are up to date.
- Emotional Connection vs Independent Reporting:
Many companies hang on to loss-making IT decisions because of an emotional or political connection by the instigator. This can have a devastating effect on the company. An Outsourcing company will give you an independent report on the best business practices for your company.
How Outsourcing Assists the Chief Financial Officer
- Enables Fixed Budgetary Forecasting:
The annual cost of supporting IT infrastructure can be accurately calculated and provided on a fixed price.
- Reduces Direct Cost of Assets:
Less internal equipment required - specific laptops, desktops, mobile phones etc., are not required.
- Reduces Technical Training Costs:
Keeping abreast of emerging technology requires ongoing training. With outsourcing, this is no longer the responsibility of the company.
- Increases Operational Visibility:
Companies need to keep accurate costing records in relation to User Vs Network issues. With outsourcing these reports are available to the CFO, and decisions can be made on the company's overall requirements.
- Provides Measurable ROI:
Allowing for annual leave and public holidays, internal resources need to be available for approximately 46 weeks per annum, and a large proportion of that time is spent performing menial tasks that aren't measured or reported on. Outsourcing those tasks means you have an accurate costing. More importantly resources can be better managed to deal with core requirements.
How Outsourcing Assists an IT Manager
- Faster Response Times:
Networks are monitored in real time and issues are identified and addressed as they arise.
- Increased Network Stability, Reduced Unexpected Issues:
Pre-emptive maintenance is one of the key factors of healthy infrastructure; however these "menial" monthly tasks are traditionally the first to be dropped when internal teams are concentrating on core activities.
- Complete Transparent Reporting on all Activities:
A report is produced for every job completed. These reports are transferred to a monthly report which provides invaluable information on the network and provides a basis from which strategic decisions can be made on future requirements.
- Increased Technical Resources:
Outsourcing provides increased resources both in actual numbers of people available to manage multiple concurrent requirements, but also in specialist technical certifications.
- More Time to Spend on Business Strategies:
IT Managers should work "on" their company's Information Technology - not "in" it. Too often this isn't the case, as they find themselves becoming an "IT Doer" not an IT Manager.
Ask yourselves these questions...
- As an IT Manager how much of your time is spent managing the day to day requirements of the network or your administration team?
- How much of your administration team's time is spent performing menial tasks on the network or for your users?
- If you and your team had 70% to 80% of this time given back to you, would your Company, your users and your network benefit?
- Would it be advantageous to have access to a greater pool of expertise and technical resources?
If you answered yes to any of these questions, then it's worthwhile how to bring a competitive advantage to your IT Infrastructure equation.