Outsourcing Versus In-House Services In The IT Industry

Outsourcing is a growing phenomenon worldwide, oneyour electronic information can be intercepted and
which is allowing many companies to focus on theirmanaged before they create a problem. Look for
core competencies and grow their businesses likecompanies like Datacraft in Asia, and OBT in Australia,
never before. It makes for much simpler organizationalthat offer both.
structures, and also creates more interactivity in theYou'll often hear that you should outsource anything
business world, making for healthier economies andthat isn't a core competency of your organization.
more integrated societies. However, there are stillHowever, you will just as often hear that there is no
some arguments for keeping services in house, andright answer for every situation, and that anything that
here we examine both the pros and cons ofgeneralizes so extensively is definitely untrustworthy!
outsourcing services, especially in the informationThe truth lies somewhere in the middle - obviously you
technology consulting area.should outsource things that aren't in your core
When it comes to IT consultants, though, it candeliveries or competencies, but not necessarily
become expensive and wasteful to keep one ofeverything. Take things like website management - this
these on staff. Unless you have a large, IT-dependentis a (usually) simple, quite routine task for many
organization, you won't need the capability to build aorganizations. If you need to update price lists, staff or
website at the drop of a hat, in house, or to build newproducts on your website, paying contractor rates to
information management systems with full employeehave this done will soon cut quite a hole in the
confidentiality. These functions are better outsourced.company budget. There is a wealth of content
Surprisingly, one function that is increasingly beingmanagement systems available to help - this is one
outsourced to information technology consultancies isservice that can easily and often be kept in house.
maintenance services. If something in your ITSome companies have become dissatisfied with full
infrastructure 'breaks', you will often need it fixedoutsourcing model, and have chosen to bring selected
straight away, which could tempt you to have anfunctions back in house. These functions include IT
employee on hand for that very purpose. However,architecture, governance and compliance, financial
companies like Datacraft, an Asian IT solutions firm, arecontrols, and IT policy. Many of these management
pioneering remote 'break-fix' solutions for companies.decisions are more effectively carried out by the
Sungard is another of these IT consultants, in the US,people that need to implement them - the managers.
that has fast and effective remote maintenanceOne thing to be aware of is that some information
capabilities.technology consultants that you outsource to, will in
If maintenance is something that particualrly concernsturn outsource services to their own partners. Look for
your organization (if it is critical that problems be fixedcompanies that take final responsibility for your
almost immediately), then monitoring is another ITsystem, no matter whether they or a partner provided
service you should consider outsourcing. Excellent ITa particular service. This will help make things simpler
resources are needed, however monitoring is afor your organization, especially at times of stress and
proactive service, that greatly enhances maintenanceconcern - when you most need things to be easy.
offerings. Events that could affect the availability of