by: Sarah Joson
Tuesday, May 19, 2015 |
Organizations have different motivations for outsourcing. For some, they see it as a platform to reduce costs, while others consider it as a pivot point in becoming more flexible. But, outsourcing should be well communicated across the board. They have to figure out which functions can be outsourced, and which ones are best left in-house.
ITProPortal.com lists down five risks that can affect your outsourced IT infrastructure operation:
Standards are not the same for both parties.
Any business executive looking to save on operational costs can be easily swayed by the promising sales pitches of third party service providers. But what they need to consider is the level of standards that the provider is willing to uphold and adopt. They get too excited and overlook some parts of the process such as research, and because outsourcing IT infrastructure is not a one-size-fits-all model, they would need to take the time and analyze which processes can be outsourced, which provider has the resource that they need, and if their provider is following the required standards in terms of security and quality of service.
Control and management issues
IT functions require a certain level of security that is usually more sophisticated than other departments. By keeping IT functions in-house, companies are able to keep an eye on their IT processes. For companies that outsource to third party service providers, some partnerships may be deemed questionable, but the real issue arises when business owners can’t implement updates and software changes because they have to wait for the provider or the provider simply doesn’t have the necessary tools to do it themselves.
Keep your expectations in check.
IT outsourcing brings a lot to the table, one of which is the ability to be flexible and agile in a fast-paced industry. In some cases, providers offer tempting deals that are hard to resist, but becomes very limiting in the long run. Moreover, it could restrict your ideas to innovate because you are already predisposed to adapt to only what the provider can offer. Having a lackluster outsourcing partner that can’t deliver could make you regret your decision to outsource.
Cost-cutting becomes your priority.
It is one of the most common pitfalls in outsourcing. Once executives realize how much money they could save from outsourcing, they soon become obsessed to the point that it’s all they care and think about. Before you get too excited, make sure that you have a solid integration plan and your internal team is ready for the changes, and the outsourced partner is properly briefed on the standards and limitations of your company.
It could affect employee morale.
Outsourcing could also have a negative impact on your in-house team’s morale, especially when it means letting go of current workers. Keep in mind that outsourcing is a tool used to boost operations, not a last resort to salvage a company.