Aug 09
21
Outsourcing your information technology department saves time and money
In the primary industries sector during the fiscal year of 2007-2008, 61% of companies reported an average IT department budget of $1 million or higher. 16% of companies were between $100,000 and $1 million. 76% of the companies included in the survey expected spending to increase. [1] The average operational budget per user across all sectors in 2009 was $7,284. [2] With costs such as these, small businesses face a challenge of acquiring the modern technology they need to run efficiently with a limited budget, and larger businesses must find cost-cutting measures that reduce their IT expenditures without sacrificing quality.
Outsourcing[3] the information technology department and its functions is a simple act that significantly downsizes and provides flexibility in IT expenditures. Through outsourcing, businesses will not only be relieved of the burden of hiring and staffing their IT department, but they will also be freed from the liabilities of maintaining an IT staff.[4] Waste due to office politics is eliminated. Instead of making sure the IT department has enough projects to “stay busy”, managers and owners can consult with an IT service as needed, saving valuable resources.
An ideal IT service company would be able to provide creative custom quality solutions to your business needs. Acting as a consultant first, they would identify the problem your business faces, and implement the steps to identify a solution. Then, utilizing their expertise, they would be able to locate the proper resources and equipment to accomplish their job. Their payment options would be flexible to meet different business styles and sizes. Finally, their service would come with a very clear satisfaction guarantee.
With the necessity of access to technology these days, businesses cannot afford not to outsource. The increasing costs and liabilities of maintaining an information technology department in-house makes outsourcing desirable. Risks of quality associated with outsourcing can easily be mitigated by selecting the right IT service company.
End Notes
[1] InfoTech “Primary Industries: 2007-2008 IT Budget & Staffing Report” InfoTech Research Group, 2007
[2] Executive Summary, “IT Spending & Staffing Benchmarks”, Computer Economics, Irvine, CA, 2009
[3] This article refers to outsourcing as it pertains to subcontracting, not necessarily off-shoring.
[4] Workplace accidents, severance pay, workplace violence, negligent hiring, office space, equipment and maintenance…the list goes on.