Buying in skills

These are all questions that have been thrown around boardrooms in firms big and small over the last few years.

Some have opted to keep their IT function wholly in-house, some have opted to seek outside assistance from IT professionals as and when they need it, whilst others have taken the bold step to fully outsource their IT Infrastructure to a third party.

What does IT outsourcing involve?

IT outsourcing essentially involves delegating the responsibility for some or all of a business’s IT infrastructure to a third party.

This could include desktop support for staff, the management of servers, general IT maintenance and upgrades, as well as strategic consultancy and recommendations so that IT hardware and software are kept up to date to maximise staff productivity, and to give a business a strong competitive advantage.

Reasons behind a decision to outsource are varied and range from the ‘I want to focus on my company’s core business’ through to ‘I need to lower my IT overheads’ to ‘I need someone to fall back on when something disastrous goes wrong.’ One of the main upsides of outsourcing some or all of a business’s IT function is that overheads can be reduced, or resources freed up, depending on the preference of the business owners.

The business can also gain access to specialised IT skills they would not normally have available from a small in-house team.

Then there is the safety net of not having to worry about in-house members of staff going on holiday or being sick, or leaving.

With outsourced IT, you always have a team of IT professionals available for you to access.

Also, one of the main benefits identified by those companies that choose to outsource some or all of their IT function is that they are liberated from the need to worry about their IT and can concentrate on where they can deliver the most value: their core business activity.

Of course it is not all plain sailing and there are some downsides to consider.

It would be fair to say that there is an element of loss of control when an IT function is partially or fully outsourced, although some business owners see this as a weight off their minds.

There is also an incorrect perceived view that the level of service will fall, though it should in fact rise if you have picked the right provider.

A rushed decision or a poor choice can mean endless headaches, so it is vital that a decision to outsource is carefully considered.

One of the main pitfalls to avoid is to choose a provider purely on price.

Of course cost is important, especially during difficult economic times, but be very suspicious of firms who claim to be able to do everything for next to nothing.

When you outsource IT, you get what you pay for. Look at the size of the team you are outsourcing to and visit them.

Be suspicious if you are not able to do this — most likely you will be dealing with a one or two man band.

Though there is a place for this kind of organisation, the level of service delivered is often highly changeable —one person cannot be in two places at the same time.

Finally, think hard about what you want to achieve from outsourcing your IT.

Are you looking for peace of mind and fixed costs? If so you will probably want to fully outsource your IT.

Or are you just looking for help when the going gets tough? If this is the case, then you will most likely need a more flexible ad-hoc style provision, though in this case the cost will not be fixed. Either way, make sure that you and your chosen provider understand the role that you are expecting them to perform, so they can provide the appropriate service levels.

Whether you choose to outsource or not is an important decision, and one that should be carefully considered.

However, what is certainly true is that it is becoming an increasingly popular way to conduct business and perhaps one that all businesses should take time to regularly review.

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