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Maximising IT budgets in a downturn:
Outsourcing
Faced with a harsh economic outlook for 2009, every
business should be reviewing its accounts for ways
to save money. This article forms the first part of
a series on how to cut costs on IT during the
downturn. |
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Companies rarely employ their own cleaners or
electricians. Instead they turn to external
contractors. Services such as couriers have all but
replaced in-house delivery drivers. Accountants and
banks offer external ledger and payroll processing
services. Of course, the outsourcing of Information
Technology (IT) pre-dates and facilitates many of
these services.
The financial benefits of outsourcing are becoming
more apparent to UK businesses as the credit crunch
begins to bite. IT is generally more business
critical than the state of your carpets and
typically more dynamic than your electrical
infrastructure. It is true that outsourcing can save
you money, but ensuring you establish the right
relationship is critical.
IT support companies can be a useful cost-saving
resource in a number of areas and for most business
types. They can provide backup for leave, sickness,
maternity and paternity, extra hands to cover the
spike of work generated by a new project, or
specialist skills and knowledge consultation. This
type of support is a useful first step to
establishing a relationship that could lead to the
long-term replacement of the in-house IT department
(outsourcing).
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Technology is constantly evolving and the
investment required to keep internal
expertise up-to-date is considerable and
often impractical, particularly for a
smaller organisations. Demand and salaries
for IT staff can also cause cost issues. The
current downturn will undoubtedly stifle
demand for wage increases for the time
being, but this effect will be minimised in
areas where there are skill shortages. An
outsourcing company specialising in IT
support can distribute these development
costs amongst its staff and clients thus
offering economies of scale to all. |
Outsourcing: the transfer of the
management and/or day-to-day execution of an
entire business function to an external
service provider. |
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These economies lead to lower costs for
you, the customer, and enable access to a
far wider knowledge base.
For small businesses in particular,
outsourcing IT generally makes the most
sense. An SME is unlikely to have an IT Team
– maybe just an individual – and the loss of
knowledge that occurs when this person
leaves can be devastating. By outsourcing
its IT, a small business can manage this
risk and enjoy the added benefits that
outsourcing brings.
It is critical that someone within the
organisation retains ownership of the IT
system and ensures it is developed to meet
business objectives. Whilst the advice of a
good outsourcing partner will be focused on
the requirements of your business (rather
than simply the technology itself), you will
need someone internally who is able to
clearly express those requirements.
If you are interested in outsourcing your
IT or wish to discuss some complementary
cover for your in-house IT department,
please do not hesitate to contact us.
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Delta Comtech Ltd
Artillery House, Heapy Street
Macclesfield, Cheshire, SK11 7JB |
Tel:
0844 4128102
info@delta-comtech.co.uk |
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