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Updated by Charles Bystock on 12/12/2012

mainframe outsourcing is  saving companies moneyChoosing the right Mainframe outsourcing solution can better position your company for future growth. With outright savings and greater efficiencies, you’ll be able to marshal your resources in more effective ways. But finding the best outsourcing partner can be a complex undertaking.

You’ll save the most with professional help.

Don’t turn the process into a new career opportunity for IT staff and management. An IT infrastructure consultant that works with you from the start can help you understand and capture every benefit from Mainframe outsourcing. That’s important because you can save in at least three significant ways.

1. Direct cost savings.

Outsourcing enables you to reduce labor and benefits costs. You can take a significant bite out of your capital investment needs for hardware and sidestep rising costs associated with maintenance, upgrades and support. Your outsourcing partner is in the business of providing those things cost-effectively, at guaranteed service levels you determine.

When you move Mainframe management off-premise, you can cut out-of-pocket costs formerly allocated to physical space needed to house your onsite equipment and personnel. Cut associated overhead costs, too.

Outsourcing is scalable. You pay for what you get. You don’t pay for anything you don’t need or use.

2. Increased efficiency and productivity.

Scalability benefits extend beyond the ability to better predict costs, because Mainframe outsourcing services are demand-based. You can comfortably adapt to changing seasonal or project-specific needs, weather a downturn or keep up with company growth without risking a lapse in performance.

With outsourcing you acquire top quality expert staffing without the time and expense associated with hiring, training and keeping them. Your own people can work on what’s most important rather than feeling pulled in too many directions. They’ll be happier in their work -- more motivated, more productive, less likely to leave. That’s hard to quantify but easy to appreciate.

Some companies save through reduced time-to-market, using freed-up resources to accelerate R&D efforts.

3. Renewed core competence.

Direct and indirect savings enable you to reduce your total cost of ownership. With that under control, you can better-target both human and financial resources. Consider these opportunities:

  • You can concentrate more intently on key corporate goals and priorities, maybe even get moving on that new initiative you haven’t been able to pursue.
  • Focus on looking for new revenue streams and strengthening existing ones.
  • If your IT staff are too valuable to lose, redeploy them to better advantage. Since Mainframe outsourcing relieves them of those responsibilities, they can contemplate ways to improve service levels and quality for remaining in-house IT operations. Enhancing internal and external customer service is critical.
  • If you can’t offload space formerly used to house your Mainframe system, reallocate it for something else. Or lease it out.
  • Take full advantage of the working partnership with your outsourcing provider. They’re part of your team now, bringing you additional highly skilled and experienced staff. They can give you ongoing advice and sometimes provide additional assistance for special projects.

Expected savings aren’t just a side-benefit. They’re something you should ask about as you consider Mainframe outsourcing providers. The service level agreements you negotiate can even spell out your expectations in the way of reduced costs or greater efficiencies. Just be aware that not all providers are a good match for your company and your specific needs.

In the end, the savings your company generates from Mainframe outsourcing will be uniquely yours.