What is core business?
Sometimes we forget; especially when there is so much to distract us from our business goals and objectives. Experience suggests that focus on core business activities will determine short to medium term success. The trouble is, of course, that running a business has become an increasingly complex undertaking.
So it’s hardly surprising that outsourcing has become a popular and successful way of managing some non-core activities. These days, outsourcing spans a wide range of services, from IT Managed Services to full Business Process Outsourcing (BPO). There is a huge array of services and service level agreements. You can go onshore, offshore, nearshore with various management options. Just about everything is in scope at a price, so it can be very difficult to decide the role of outsourcing in your own specific business. Making the right decision about just what to outsource can be problematic. Sound familiar? Well you are in good company.
One area where the decision is fairly straightforward is operational IT. For most companies, it plays no role in core business, yet it can provide major distractions due to its criticality to key business functions. It delivers no real competitive advantage, but if you ignore it, it can bring your business to its knees. The problem is that it has become incredibly complex and all the signs are that there is more of the same to come. It’s no longer the domain of the gifted amateur. IT infrastructures have got to the stage where they are best managed by specialist companies, who fully understand how to drive efficiencies without increasing cost or risk.
Other key services, such as telephones and data networks have a similar business role; high dependency and low differentiation. Mid-market companies wouldn’t dream of running their own voice and data networks, so why do so many still retain an in-house IT function? It’s a case of maturity. 5 years ago, there was insufficient standardisation of technology or process. But today things have moved on. Standards for integration, operations, governance and security have all been established and embraced by most large enterprises. Now it’s time for the smaller companies to gain from the efficiencies produced by their pioneering efforts. It is now possible to reduce the overall cost of running your own IT infrastructure by outsourcing to a specialist service provider.
But it’s by no means all about cost reduction. Advanced technologies and increased dependency on IT have brought an unwelcome mix of complexity and risk. Outsourcing can bring substantial benefits by reducing the likelihood of service failure through improved system design and management techniques.
So given that outsourcing your operational IT is a good idea, what do you need to do? What are the pitfalls and how do you avoid them? What if your current IT infrastructure has problems, which need to be addressed prior to transition? Outsourcing is not about managing “your mess for less”, but applying best practice in terms of design and operational management to deliver savings and reduce operational risk. Most importantly, how do you select a service provider whom you can trust to manage such an important element of your business operation?
To answer these questions and more, I have produced a paper which takes a simple down to earth look at IT infrastructure outsourcing. If you’ve read this far, then I assume you are interested in this topic, so why not take a look at the paper. I think you will find it most informative. You can find it here.
Alternatively you may prefer a chat. I’d be delighted to discuss the matter with you. Why not give me a call. I’m James Barden the Managing Director of INSITE. You can reach me on 01892 686 000.