Many of the reasons that companies outsource to meet their IT needs are obvious. The specific projects are of such a duration that hiring the necessary people to do the job would be impractical. Hiring those people might also be impossible, at least budget-wise, considering the salaries and benefits they would demand. Even still, if the budget were ample enough, the experts sought to be hired would be reluctant to take the position in light of its lack of security - once the project was complete, there would be no more need for those people.
From a Human Resources perspective in general, another benefit of outsourcing is lack of liability. Especially with large companies, hiring (and firing) employees is an undertaking with considerable implications for the employer. For example, immediately upon hiring an employee, the employer incurs liabilities, including worker's compensation and potential unemployment liabilities. These two examples merely scratch the surface. The greater the number of employees, the greater the probability that employer liability will manifest itself. With that in mind, many companies contract for outside services whenever possible.
Another more subtle reason to outsource IT needs is that it is more efficient and more profitable than doing it yourself. Even if a company could afford to address all of its IT needs in-house, and had liabilities covered, that company would still, more often than not, better serve itself by hiring a consulting firm to provide IT-related services.
Companies that rely on professional consulting firms for IT needs get better and more efficient results than those that attempt to address them in-house. One reason for this is that technology is usually ancillary to a company's goals. Information technology might be a tool or even a catalyst to the company's growth and earnings, but it is rarely the main business of a company. To spend excessive amounts of time and research towards managing its technology -- which is often completely unrelated in type to the company's primary business -- a company detracts resources that could otherwise be allocated to its main business strategies.
IT Consulting Firms, on the other hand, base their whole existence on being knowledgeable in the field of information technology. They are invariably more qualified than any given in-house IT department to provide the appropriate advice, solutions, and support. Companies that utilize these firms for their IT needs achieve optimum results. This in turn produces efficiency.
Our mission for providing IT outsourcing services is to raise the business agility of our clients while reducing their overall IT costs and technology risks. Above all, the key advantage of outsourcing IT staffing needs is that it enables our clients to invest their resources into other activities. In the case of your company, our job would be to support your staff enabling them to focus all their time and energy into managing your organization and the clients that you serve rather than having to concern yourselves about your IT infrastructure.
The most commonly cited reasons for outsourcing IT functions include:
• Reducing IT costs through efficiencies and economies of scale on the part of the service provider.
• Access to world-class IT skills, experiences and resources.
• Removing non-core business.
• Minimizing sizable capital expenditure on IT infrastructure.
• Certainty of future IT spend.
The following list is simply meant to serve as a guide. By no means is it meant to be a complete and all encompassing list. The following tasks would be completed on an ongoing basis in addition to any other tasks that may arise.
- Daily IT Support
- End User Training
- Database Development
- Website/Intranet Development and Maintenance
- Security Auditing
- Proactive Systems Management
- Ongoing Systems Analysis
- Backup/Disaster Recovery Policies and Testing
- System Documentation
- Preventative Maintenance Procedures
- Implementation of new technologies
IT firms are also part of the service-industry. Their success directly correlates to their ability to satisfy clients. With that in mind, consulting firms go the proverbial extra mile to get the job done -- and done right.
IT Outsourcing Planning
There are several steps organizations can take to help ensure successful execution of IT outsourcing:
• Create a robust business case to support the decision to outsource with senior executive backing.
• Know and understand your existing IT operation and what you seek to achieve by contracting external IT services from the service provider.
• Know and understand your existing IT organization and its cost base so you can evaluate whether the pricing model proposed by the service provider offers value for money.
• Consider what form of organization is best suited to meet your objectives.
• Conduct due diligence on third party contracts and licenses to ensure that your licenses permit use by the service provider.
• At the pre-contract stage and during contract negotiation, prepare and agree on an orderly transfer procedure so that the outsourced services can be transferred seamlessly back to you or another service provider at the end of the contract.
• Legally, be prepared to negotiate the details of the outsourcing transaction so that the terms can be documented in the services agreement.
Outsourcing IT to Asia
A combination of high overhead in the United States and strong cultural ties between the domestic and Asian information technology industries have led many companies to outsource labor-intensive software programming to Asia.
Despite its distinct advantages for companies looking to outsource their IT services, India's volatile political climate and rampant corruption present problems. Some of the 185 Fortune 500 companies that outsource software to Asia are choosing places like Vietnam or China with more predictable politics and less corruption. Other companies that outsource their customer service are finding that their customers prefer the Americanized English of the Philippines to the British English that predominates in India, though all of these countries have their drawbacks, from censored Internet lines in China and Vietnam to Muslim militancy in the Philippines.
Despite the hiccups the IT service industry continues to grow as the software industry becomes more competitive and U.S. companies try to reduce overhead. The Asian IT service market is still in its infancy.
more from Wikipedia http://en.wikipedia.org/wiki/Information_technology_outsourcing
more from About.comhttp://compnetworking.about.com/cs/.../a/career_outsourc.htm