Guide to IT Outsourcing

Everything you need to know about outsourcing but were afraid to ask!

Why Outsource?

The desision to outsource IT is usually based on one of these reasons:

• An internal IT function is more expensive
• Staff need to focus on core business
• The quality of in-house IT is not up to scratch

All of these are valid, but we urge you to view outsourcing in a slightly different way. Value exists, but not perhaps where you think!

For smaller networks, for example, cost savings may be negligible, or non-existent. If a three-person support team is reduced to two by outsourcing part of the IT function, it is unlikely that the outsource agency function will cost less than one in-house staffer.

What you will have, though, is access to a far broader skillset. That know-how will also be unbiased and entirely focused on the business benefits of technology.

How Much to Outsource

You also need to consider how much of your IT function to outsource. It may not be ideal to hand everything over. Firstly, you may be relinquishing control over elements of your business which are part of a genuine competitive advantage. Equally, you may be handing over mundane functions, which you could comfortably handle in-house.

Principal’s approach to outsourcing is based on pragmatism rather than received wisdom. First, ask yourself what prompted you to consider outsourcing? If your support staff have unreliable PCs, it may simply be time to buy new equipment (An outsourcer would be unlikely to improve this situation- indeed beware an outsourcer that would claim to!)

Once you’ve considered the health of your system, look for elements you don’t want to lose control over. These will be key business functions, and/or elements which are running smoothly. That should leave you with areas in which you are under-skilled, or require mission-critical assistance (e-mail, backup and antivirus are common culprits). You may also want to outsource technology for a new venture until you have expanded your in-house team.

Heads-Up Questions

Consider these questions about responsibility when implementing an outsource relationship:

• What happens if there is a fire? Who will get us up and running?
• What if my IT manager resigns? Is anyone else capable of running the network? And is there enough documentation for someone else to step in?
• And at the end of, say, a one-year outsource contract, is there a handover plan?

For more advice on whether outsourcing is right for you, read our guide “Do I need to Outsource”, here. Or, find out about our wide range of outsourcing options here.

Your Principal Adviser can answer any questions, call us now on 0333 240 8130.