In today’s economy, many companies are looking at how they can cut costs, improve service quality or redeploy resources to make their IT more efficient. For some companies, outsourcing can significantly enhance IT performance and cost management by outsourcing part or all of their needs to a vendor. Many smaller companies view outsourcing as: “If they win I must be losing.” However, an outsourced IT vendor will most often have access to tools or personnel that are outside the budget of a small to mid-sized business. By sharing resources across many clients, a win-win scenario can be created where the clients gain access to capabilities they would not be able to afford. At the same time, the outsourcing company is able to make a profit and stay in business.
We have put together a top 10 list of things to think about when considering outsourcing your IT. This list by no means covers everything but it does address the things you should truly consider when weighing your alternatives. It also discusses some of the pitfalls many companies slide into when considering outsourcing.
When you hire people to work in your business, you interview them, check references and put them through a screening process. Why wouldn’t you do this with your outsourcing company? You should ask for letters of reference from current clients, ask to tour their offices and meet some of the people who will be supporting your company. You are about to invite these people to become your trusted IT advisor, it is vital that these people are a good fit for you and your business. A company that does not have a good client satisfaction record has only been in business for a very short period of time or does not have the skill set you need may not be a fit.
You can clearly state your business objectives and your vendor can help. What it comes down to is goals…what do you want to achieve? Ask your vendor how you can reduce specific IT costs and let them know you’ll compensate them for performance. Many service providers today will agree to take on the management of your network for a flat monthly rate instead of billing you by the hour. This is a great incentive for the service provider to get your issues fixed permanently. Those nagging IT issues suddenly become their costs when you have a fixed rate plan and it costs the service provider when they have to dispatch an engineer to fix them. With you and the service provider aligned when your IT runs with fewer issues both of you win. A traditional hourly billing mode - although great for fixed projects or limited scope work - does not give the service provider incentive to limit the time they spend or permanently fix the reoccurring issues you have.
You know your IT shortcomings or you wouldn’t be considering a service provider. So, with this in mind, find the know-how you really need. Does the vendor propose (and back up!) the skills you require to round out your capabilities? Perhaps you have a strong help desk but need specialized people to manage your Exchange and Databases. Perhaps you have a strong development team or network guy who does not want to take on the responsibility of helpdesk. Whatever your situation find a provider that can specialize in filling the gaps in your strategy.
First class service providers all clearly document quality assurance processes. Expect a step-by-step approach they will use to meet your needs. If they can’t provide this, don’t consider them. You’ll know when you read their documentation that they’re the right fit for you.
Your point person will matter. They represent the type of person the vendor hires to meet your needs. Consider them a bellwether of the service you’ll receive overall. On this note, have a rigorous discussion with your would-be manager to verify they’ll work well with your team.
You can gain in so many ways by establishing a new IT service relationship. It’s a good idea to figure out how you could fill the gaps in your business. Many service providers bring together IT skill sets from vastly different areas: network, helpdesk, development, Database Management, IT management. Leveraging their skill sets can open up ways to further streamline your business or point out areas where you are deficient in your IT planning.
Internal team member time will be needed. Periodic time from senior staff will be required for a cost-effective relationship. On this note, set this time aside. There will not only be planning sessions with senior management but also routine time needed by IT managers working with this new team. Determine from prospective vendors what these requirements are and assess accordingly. Much like how your full time employees and managers need guidance and regular meetings…so will your outsourced IT provider.
Professional IT service firms come in all shapes and sizes. With the right firm, you’ll get all the advantages that larger companies enjoy without the hires. Hopefully, you can focus on strategic needs and not the tactical. Working with your service provider as a trusted member of your team creates the partnership you desire.
Not all vendors take the same approach to setting expectations and delivering on them (or not). Some use service level agreements, some provide regular reporting and interpretation, others may have their own unique view. Immerse yourself in the various metrics and challenge vendors to compare performance approaches.
When you consider hiring IT service providers, keep in mind what you’re not hiring too! Do you want to minimize employee slack time? Paying full time employees for part time work? That’s what you stand to reduce…not to mention those pesky jury duty summonses, home sickness epidemics and other troubles. You also stand to benefit from having a team at your disposal with tools or personnel that has expertise that can complement your existing staff.
Hopefully, these points will assist in considering your options. Getting the right company can make all the difference. Give us a call and hopefully we can be the right fit for you.