Outsourcing does not automatically mean cost savings
So will you save money from outsourcing the management of your IT infrastructure? Although outsourcing has come to be associated with cutting costs, analyst Dean Davison of the META Group warns that naïve expectations of automatic reductions are one of the biggest failures in outsourcing.
According to Davison it is important to understand why costs are lower. Understanding the benefits that can come from outsourcing your IT infrastructure will enable you to perform a comparison with the costs of managing technology internally.
According to the META Group, businesses looking to outsource should carefully consider the following factors when weighing up any decision.
- Understand the business objectives.
- Assess the risks of outsourcing and keeping services internal.
- Conduct cost comparisons of outsourcing with internal operations.
- Identify the human capital implications of outsourcing.
- Document current service levels provided internally.
In a world where the growing complexity of technology is threatening to overwhelm some small companies, outsourcing, whilst not right for every company, is one avenue available to businesses looking to ease their technology burden.
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