Top Categories

Latest Articles

Company Overview of ABH Nature's Products, Inc.

  ABH Nature's Products, Inc. engages in contract manufacturing of nutritional vitamin supplement capsules, tablets, and liquids, as well...

on Nov 17, 2017

These 3 Supplements Could Protect You From the Effects of Radiation

  In November 2006, Alexander Litvinenko, a former KGB operative, sat down for tea at the Pine Bar at the Millennium Hotel in London. He...

on Nov 16, 2017

5 Tips Menjaga Kesehatan Wanita

1.Menjaga Kesehatan Wanita dengan Perhatikan Berat Badan Anda Obesitas atau kegemukan adalah suatu kondisi medis dimana kelebihan lemak tubuh...

on Nov 16, 2017

Secrets For The Greatest Network Marketing Success

The forex market can offer a great way to earn steady returns, but you don't want to just jump in blindly without knowing what you are doing....

on Nov 15, 2017

Vitamix Labs opens supplement manufacturing facility

Vitamix Labs, one of the most highly regarded vitamin manufacturers in the industry, recently announced a major milestone: The company has moved...

on Nov 14, 2017

New blog posts

Hello, World!

May 21, 2014

It's my first blog entry!

HTML block #1

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod.

Translate This

Dropdown Box Code

Outsourcing IT - Is it the best option for your organization?

by Administrator on Jul 6, 2006

Is there really a need to outsource your organization's IT workings? Won't it be better if the organization can have a direct internal control over the IT operations, instead of relying on a 3rd party to help you decide what is best for your company?

Well, the decision to outsource often just falls back on the few crucial considerations, as stated below:

(1) Do you have the internal resources to run existing mission-critical systems efficiently?
(2) Are you prepared to consider high degrees of organizational and cultural change, in the face of managing your IT operations?
(3) Do you consistently need to create new business and technical interfaces for your day-to-day operations? If yes, is it really more cost-efficient to deploy internal staff to execute these tasks?
(4) Based on needs and budget, to what extent will the organization's IT functions be outsourced?

Simply divesting your company of a function that cannot be effectively managed internally is not a sufficient reason to outsource. Before the final decision to outsource is made, the CIO (Chief Information Officer) and his IT management team have to identify and pinpoint internal management failings. Through identifying the failings, they can address them to avoid repeating the same mistakes in the selection, transition, and management of an outsourcing relationship.

The initial decision to outsource and the final selection of a suitable IT services company form integral parts of an organization's sourcing life cycle. The decision to outsource all / parts of the organization's IT functions is one of the most difficult decisions that a CIO and his team has to make. The simple reason being this decision will bring about significant business risks in the form of transferring day-to-day responsibilities of running mission-critical systems to a 3rd party. In addition, there may be considerable operational impact on staff that comes in the form of adjustments in working styles.

The objectives of outsourcing generally comprise of the following:

- Cost control / savings
- Concentration on core activities
- Access to new skills and technologies
- Overcoming internal organizational inertia to effect change

Objectives have to be clearly identified by the CIO and he will also have to take on the responsibility to communicate these objectives to all respective stakeholders from the outset of the process.

A outsourcing relationship that starts without clearly-defined objectives frequently fail, or may require significant remedial efforts to reset expectations and amend the services agenda. This will have the negative effects of wasting resources and affecting the bottom-line of an organization. Thus it is crucial that internal needs / failings are fully assessed and evaluated before the final decision is made.

Lastly, upon outlining the objectives, the CIO and his team will have to define, communicate and agree on the areas that will be outsourced. Areas of consideration will include deliverables, measurement and acceptance criteria.

CIOs are often encouraged to view outsourcing as part of an entire process that ranges from sourcing strategy formulation to monitoring, measuring, evaluating, and re-sourcing where and if appropriate. But like any partnerships, outsourcing can sometimes have the reverse effect of bringing about traumatic experiences, which can prove to be costly to the organization. So before you engage a 3rd party IT services firm, seriously consider all the impending factors as outsourcing is a long-term engagement and should not be taken lightly as a temporary relief of internal management failings for the organization.

Article Source: http://www.articledashboard.com

Article contributed by Phil Lam who is a VoIP consultant at Lantone Communications. Led by a team of experienced IT developers, Lantone Communications is one of the leadingVoIP Provider in Singapore. Please visit their official website for the latest information on VoIP. This article may be reprinted in its original form as long as the resource box is left intact and the links live and the article is not to be modified in any way.

Management 17610 Views

Author

admin

Administrator

Actions

Random Articles

Go Ahead, Toss the Starfish!

There is an old story that tells of a man walking along a beach when up ahead in the distance, he catches sight of another man acting strangely....

Inspirational

Are Fruits Making You FAT?

I want to make this perfectly clear, fruits are healthy and they are good for you. They are loaded with vitamins, fiber, and minerals. Fruits have...

Obesity

The Causes Of Epilepsy

Commonly known as a seizure disorder, epilepsy is a chronic neurological condition which causes seizures to arise often, and unprovoked. The word...

Health & Medical

The Scoop on Stress.

Stress is defined as a response by your body to any demand made upon it and a 'demand' means a change. Did you know different stress levels have...

Fitness

The Benefit of Yoga

The benefit of yoga practice goes far beyond the actual time you spend in the poses. One of the most common reasons why people begin practicing...

Fitness

Verybottom block position

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod incorrupte, brute laoreet at pri, eam antiopam honestatis efficiantur ea. Velit atomorum voluptaria ad nam, hinc aperiam accumsan ne est, ut dictas dissentias his.

Usu agam platonem maluisset ut, et sea volumus sadipscing. Nec viderer singulis delicata at. Agam dicunt verear pri in, te commodo officiis cum. Sensibus praesent mel ut, cu meis accumsan eos. Expetenda suscipiantur cu vel, at facete audiam vis, no pro vitae commune.

Footer block #1

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod.

Footer block #2

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod.

Footer block #3

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod incorrupte.

Footer block #4

You can change this block in admin panel. Remember, if you change template, this block will be lost. We advise you to clone this block.

Ne lorem percipit efficiantur mei, ius ut simul vidisse. An vel probatus explicari appellantur. Has et comprehensam interpretaris, quo no inimicus maluisset temporibus. Ea mea quod.