A legislative burden
We live in a time of ever increasing regulation. All companies are now burdened with additional compliance requirements, of which IT has more than its fair share. The need to demonstrate adequate control of data management and service assurance creates additional demands in terms of process definition, implementation, monitoring, audit and corrective actions.
The cost of these activities or, in many cases, the danger of failing to comply with their requirements, can seriously impact business operations – either by increasing business risk, or by diverting attention away from the core business towards non-profitable activities.
Investment in staff
Having the right staff can mean the difference between success and failure for most businesses. But attracting and retaining good quality staff is a major challenge, due in the main to the shortage of current skills and the increased level of demand.
It is enough for most small to medium enterprise (SME) companies to focus on core business staff, without the added burden of building a robust and competent IT organisation. Indeed, by reducing the liability of employing in-house IT staff, more effort can be concentrated on augmenting existing profitable employees with additional resource, rather than developing a new team of highly skilled IT experts.
DIY or outsource? The constant dilemma
Who can you trust to host and manage IT infrastructure? Largely speaking, it’s an easy decision for large enterprises: they have the scale and market presence to dictate terms and conditions to the major IT outsourcing companies. They have the power to negotiate very favourable rates and service levels as the main outsourcing players vie for control of the account. And, of course, they are mindful of the subsequent business opportunities that may arise from the relationship.
But things can be very different if you are not a big corporate player. Without the powerful negotiating position of the major players, you are met with a ‘take it or leave it’ ambivalence. While there are several smaller companies who will be keen to take your business, how can you decide if they are up to the task?
How do you decide? What is your core business? Does it include IT?
If you achieve a competitive edge through the innovative use of IT, then you may want to continue to invest in it. For example, the integration of Microsoft Exchange into core business processes may give some legal companies a competitive edge. Similarly, the ability to sense risk through the creative use of high performance processing may be the deciding factor for large investment bank.
However, for most SME companies, IT is no more than a facilitator. It provides automation for generic business processes and aids communication, but there is no real opportunity for differentiation. Innovation in IT is not a requirement; rather, it’s about service level, and the use and protection of valuable company information. In this case, it’s often best to leave IT to the experts and concentrate your own efforts on running your business. more...
