Information Systems in Organizations

Five signs you should consider outsourcing your IT

http://www.bizjournals.com/boston/feature/5-things/2015/06/five-signs-you-should-consider-outsourcing-your.html?iana=ind_tech

 

One of the topics discussed in chapter 9 is acquiring information systems. The book explains how companies acquire information systems from outsourcing. In the article, “Five Signs You Should Consider Outsourcing Your IT”, written by Diego Rosenfeld, the author talks about when the companies should consider outsourcing some or all of the components of their IT function. The reasons that companies are outsourcing IT function is to save money, improve performance, add scalability, and get access to strategic IT thinkers. The article points out five signs when the companies need outsourcing

1. Can’t keep up

Broader IT road map includes strategic thinking about issues like how to leverage the cloud and how to select and manage the highest-impact systems and project. Thus, the companies should consider outsourcing when they cannot keep up with technology changes.

2.Anticipating growth

The companies need more diverse IT skill sets as companies grow. Outsourcing will bring the companies broader spectrum of IT skills such as system analysts, database experts, report writers, help desk, system administrators and strategic thinkers.

3.High turnover

There are limited talented IT resources and they are in high demand. For most of the companies, it is hard to retain talented IT resources internally and having only one person with key technical skills creates risk to the business. In the article, Diego says “external provider with scale and a track record of continuity mitigates the risk of a shallow internal resource pool. You’re not just buying a consultant, you’re buying a firm.” Thus, the companies can decrease their risks and increase their opportunities by outsourcing.

4.Performance and stability issues

The companies should consider outsourcing when the companies are having problems in recurring performances and stability issues with critical IT systems. Outsourcing will help the companies in managing IT systems with deeper expertise.

5.Around-the-clock and multi-location coverage

Many companies and their employees run around the clock and the globe, which means that you need IT resources available 24/7 year round and on-site for emergencies. By outsourcing IT, the companies can have service desks that run 24/7.

In summary, there are many inflection points that may lead organizations to outsource some or all of their IT functions, for example:

  • Interruptions in service
  • Departures of key personnel
  • Expansion plans
  • New strategic initiatives

As Diego says in the article, modern IT outsourcing providers provide skill, scale and strategic vision to help growing businesses focus on their business while they focus on running the IT foundation that makes it possible.

 

Questions:

  1. Is there any other signs that the companies should consider outsourcing services?
  2. What are the other benefits of outsourcing IT services?
  3. What are the risks of outsourcing IT services?

3 Responses to Five signs you should consider outsourcing your IT

  • One of the risks of outsourcing is a data and security protection. The risk of security breaks or intellectual property protection is raised when working in international business.

  • THis is a great article that lays out the basics of when it is time to find IT resources outside of your company. Have any of you worked with really good IT staff and see this completely the opposite?

  • I guess the time to consider outsourcing IT would be when the company is getting larger, and feels comfortable handing over that type of control, and plus the $ amount would be a consideration. Definitely a risk would be some sort of data breach..

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