| With the constant threat of hackers and | | | | "Reactive" IT consultants promise to resolve your |
| hurricanes along the Gulf Coast, it's not hard to | | | | IT-related issues. But at what cost? How do you |
| see why executives have turned to outside | | | | know he or she is truly solving your problems |
| assistance to help manage their companies' IT | | | | instead of milking them? |
| functions. Additionally, IDC reports that 74.6% of | | | | If a provider's fee structure is directly linked with |
| business executives mention "data security" as a | | | | the number of computer problems, excuse |
| chief IT concern. According to the Data | | | | yourself from the relationship. Review the |
| Governance Institute, 158,048,276 records have | | | | service-level agreement (SLA). How will the |
| been compromised due to security breaches over | | | | provider monitor, measure and enforce it? |
| 2 and a half year span. | | | | Providers should present you accurate and |
| However, we've found that evaluating the costs | | | | complete information with realistic quotes and |
| and risks of IT outsourcing can be uncomfortable | | | | proposals. |
| for client companies. According to analyst firm | | | | 5.Hire a business partner, not just a provider |
| Aberdeen Group, 76% of companies said that | | | | Focus as much on strategic outcomes - like |
| vendor management effort and costs were much | | | | improved profitability, productivity and business |
| higher than expected. 51% reported that their | | | | growth - as you would upfront costs. Make sure |
| outsourcer was not performing to expectations. | | | | the service provider understands how you intend |
| Information Technology accounts for almost 30% | | | | to use the deliverables that they are agreeing to |
| of the outsourcing industry. Therefore, it is smart | | | | provide. 80% of executives surveyed by |
| for a business to undergo a "sourcing analysis" to | | | | Accenture expressed commitment to permanent |
| compare its internal risks, service levels and costs | | | | outsourcing. Partner relationships tend to have |
| to those of external vendors and IT support | | | | lasting power. "Providers" are usually only a |
| companies in Houston. It has proven to make the | | | | temporary - and potentially costly - fix. |
| difference between improving - and damaging - | | | | 6.Use a shared-risk approach According to |
| your business. | | | | Gartner, clients see a 15% to 20% reduction in |
| 1.Establish business outcomes to ensure | | | | costs by moving to shared IT services. But |
| measurability and accountability Determine the | | | | proceed with caution Good IT partners should help |
| business results you wish to achieve through | | | | you achieve your goals - at their own risk and |
| outsourcing. You should establish business | | | | cost. Ask what kind of recovery and redundancy |
| objectives for outsourcing with clearly defined | | | | means the provider offers. The objectives to be |
| goals. This may sound obvious but having | | | | achieved by outsourcing must be quantifiable and |
| scheduled checkpoints to review the status of | | | | established as criteria at the start of the contract. |
| your outcomes is an easy way to ensure that | | | | If the customer can compare the performance |
| the provider meets your standards. Otherwise | | | | with the pre-established objective, then the |
| you run the risk of a he-said, she-said | | | | benefits of outsourcing are clear. Failure to meet |
| confrontation. | | | | the established service levels must result in a |
| 2. Determine the "true" financial savings The cost | | | | predefined penalty. |
| of doing business has substantially increased in | | | | 7.Achieve scalability & predictability Some |
| recent years. While the trend to digitize | | | | industries - such as the legal sector - are more |
| documents has promised to streamline processes, | | | | prone to merging or disbanding, requiring |
| many are overwhelmed by the related computer | | | | administrators to take proper action to ensure |
| problems that hamper productivity. According to | | | | that the integration or relocati on process is done |
| Accenture, 25% of executives who outsourced | | | | quickly and without disruption. Lesser |
| their IT reported first-day improvements in | | | | commitments to fixed costs make outsourcing an |
| business processes in addition to cost. If reducing | | | | attractive alternative. Your outsourcing provider |
| cost is one of your objectives, make sure the | | | | should meet your growth requirements, not just |
| vendor-promise of lower costs doesn't | | | | your current situation. Be sure to review the |
| compromise efficiency and revenue. Just one hour | | | | service offerings to make sure that you only pay |
| of downtime costs a 25-employee firm an | | | | for what your company needs, allowing for |
| average of $7500 in lost productivity alone. As | | | | scalability as needed. According to Gartner, you |
| one smart IT coordinator of a mid-sized law firm | | | | could be paying as much as a 50% premium for |
| told us, "We pay a premium for IT support to | | | | so called "added benefits". |
| get premium service in return." | | | | 8.Request data when you need it In many IT |
| 3.Choose a proactive business partner Clients | | | | outsourcing relationships, the vendor may protect |
| expect businesses to keep pace with their | | | | its client data and applications at a secure, offsite |
| demands, and still work within very strict budgets | | | | location, such as a datacenter. This safety |
| and timelines. To combat this, an experienced | | | | measure should provide added security- not |
| computer network consultant should be able to | | | | added stress. For your peace of mind, make sure |
| identify problems, not just simply react to them. | | | | your provider provides tapes of your data when |
| Merely reacting to problems can leave your | | | | you need it. Quarterly tapes are typically the |
| employees wasting hours waiting for tech support. | | | | standard. |
| The provider should have proven skill levels, such | | | | 9.Have an "out" strategy Lastly, remember that |
| as certifications or client references to ensure you | | | | your outsourced provider is working for you. One |
| avoid becoming their "guinea pig". Be certain that | | | | of the greatest anxieties in social commitments is |
| their services meet your standards by asking the | | | | the fear of being "locked in". The same can be |
| provider to offer a trial period. A proven vendor | | | | said for business relationships. Create provisions |
| should have no problem offering a trial of their | | | | that allow you to terminate the IT outsourcing |
| service or software. Be wary of those who do | | | | relationship if certain expectations fall short. Being |
| not. | | | | held captive by an outsourced provider can make |
| 4.Select a provider that thrives off your success, | | | | you lose your sanity, and in many instances, your |
| not your 'problems' Make sure your IT provider | | | | job. |
| doesn't achieve their goals until you achieve yours. | | | | |