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IT Outsourcing - Things to Consider

by: Sarah Joson

Tuesday, May 6, 2014 |

Information technology (IT) processes have always been known as the easiest to outsource. One of the reasons is because the segment thrives in an environment driven by innovative tools and approaches.

Outsourcing has enabled organizations that have a hard time finding the jack of all trades of the IT world address internal talent shortages. When companies began outsourcing IT processes, they were able to reduce costs that otherwise would have been spent on finding the right IT expert in a short span of time, proper training, and other expenses attributed to recruitment. Nowadays, not only does outsourcing help reduce cost, it also reinforces business continuity and helps redefine a firmís value.

However, even if outsourcing is easier nowadays, IT service providers still face several challenges such as proper certification, diversified demands in the market, and rapid changes in the industry, among others.

When it comes to IT outsourcing, consider these crucial factors as posted at SmallBizTrends.com:

Determine the scope of your outsourcing project.
Some companies prefer to outsource in large sections, while others are more comfortable with bringing in a consultant who will work with the existing setup. Planning your route will help you find the best provider that will match your businessí requirements. Different business models will mean different protocols, so one plan might not work for everything.

Review their client testimonials.
See to it that they have experience in handling companies that are similar not only to your companyís size, but core processes as well. This will help you determine if they will be able to deliver and drive business value up.   

See if the integration process and new technology will affect business operations.
Upgrades are never-ending in the tech world, which is why you need to assess your current IT capabilities and update your inventory before the outsourced IT network provider comes in. You should also anticipate the changes while new processes are being integrated to your IT operation.

Do they have contingency plans?
Itís always ideal to check if the IT outsourcing service providers have back-up plans because should a problem ensue and operations are stopped, it will create a ripple effect down the line and might be detrimental to your overall output.

Who will be the point person of the entire operation, or from their end for that matter?

In the end, the service providers are still an external entity with the same goals as you. Make sure your contracts are in order and SLAs cover all of the important details such as breach of data and its implications. The client should also understand and review the outsourced partyís security policies, limitations, and safeguards.

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