| IT practitioners are often faced with this burning | | | | management becomes all the more simpler. |
| question: Why outsource? Or should I outsource? | | | | Economies of Scale |
| Outsourcing of manufacturing functions were the | | | | It is always a huge challenge for CIOs to meet the |
| predecessor to IT outsourcing. Answers to the | | | | demands of a dynamic business. When you outsource |
| aforesaid question will be similar to answers to why | | | | and save some money in the process, you also tend |
| manufacturing groups took the outsourcing route as | | | | to get some freed up budgets available for doing new |
| early as IT departments. | | | | projects. This in turn contributes to greater economies |
| Is it always cost? Or is it to achieve better economies | | | | of scale within the IT group and empowers the whole |
| of scale? Is it shortage of technically trained people? | | | | organization to move forward. |
| Has it something to do with global reach in terms of | | | | Skills Availability |
| supply and demand? Or is it just technology spread or | | | | Heavily drawing upon the second reason mentioned |
| the lack of it? | | | | above, outsourcing is an avenue to avail those |
| I think it is a combination of all five. | | | | rare-to-find skills that are badly needed to support |
| Cost Optimization | | | | legacy systems and keep the business running. |
| Optimization of costs within the IT function will be one | | | | Global Reach |
| of the primary reasons why IT functions are | | | | When businesses grow globally there is always a |
| outsourced globally. A combination of engagement | | | | problem of addressing demand as well as supply of IT |
| models will be employed to arrive at the best possible | | | | functions to the global users. To what extent can a |
| outcome. | | | | centralized IT organization serve a global business user |
| Management of Technology | | | | base? There are always limitations. When you |
| The ever changing technology landscape is throwing | | | | outsource some of these functions, you can leverage |
| up challenge after challenge to CIOs. Gone are those | | | | upon the global reach of the vendor organization to |
| days when you could afford to keep people on your | | | | address such issues. |
| payroll who have got skills across all the technologies | | | | IT Outsourcing is here to stay. But you have to get |
| that you may have within the organization. On the | | | | your outsourcing models right, and you also need to |
| other hand, if you have a portfolio of vendors who can | | | | zero-in on what you should outsource. |
| provide you such services, your technology | | | | |