The key to outsourcing success

Outsourcing has had some bad press in recent years but it can work as long as some basic rule are followed, argues Phillip Coombes

By 2008, according to Gartner, spending on IT services delivered via global sourcing will surpass $50bn. As we have heard time and time again, the days of the IT boom are well and truly over. The IT downturn encouraged many businesses to change the way they ran their operations by outsourcing certain areas to help reduce overheads, such as multi-tasking or transferring the ownership of their LAN/WAN environment to cut costs and manage existing staff and technology more effectively.

This focus on outsourcing has meant that specific business processes such as network operation centres, management of technology, and remote management have enjoyed a boom. That said, outsourcing as a concept has also faced some negative publicity over the past year with many businesses finding it difficult to take a step back and let go of the reins.

The main concerns relating to outsourcing areas of the business usually begin with trust, or lack of it. The notion that if you leave a job to someone else, it will fail. In fairness, outsourcing does mean agreeing to a lack of direct control, but it should not mean a drop in business standards or quality and this is where the problems often lie. For example, ensure that your provider has sufficient back-up procedures in place should a system fail, so that there is no loss of service or access to critical business systems.

Intelligent outsourcing is about weighing up the pros and cons for your business. Ensuring you choose a supplier that you trust and one that understands bespoke requirements is key to a successful outsourced business function. As with any key business function, 24/7 support is critical and should be offered as part of any good managed service offering. Flexibility is also vital. You need to select a supplier that understands the infrastructure of your business as well as your brand values if they are to replicate the high quality and standards that you seek.

The potential cost-savings associated with outsourcing business functions have been widely documented, but working with a partner to manage processes remotely can also incur a large cost. This can put some organisations off, which begs the question: why isn’t there a middle ground for those organisations that cannot afford 24/7 support, but still want to reap the benefits of outsourcing to an expert?

It is this flexibility and scalability that organisations require to take the step from in-house to outsource.

Phillip Coombes is managing director of Fibre Technologies