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Updated by Charles Bystock on 10/25/2022

mainframe outsourcing (4)No operations scenario could possibly be ideal for every enterprise, so there’s no reason to automatically assume mainframe outsourcing is the right answer for your company. Nonetheless, mainframe outsourcing has been successfully implemented by so many global enterprises over the years, it warrants examining the pros and cons as they might relate to your organization.

If you’re a B2B marketer, you’re working for internal stakeholders, but you’re also working on behalf of your customers – businesses with customers of their own. That’s good news, in that the potential benefits you derive from mainframe outsourcing can benefit both sets of constituents. But it also makes decision-making more complex, because you have to consider the ramifications of outsourcing from two different perspectives.  

What’s the downside?

Key objections to mainframe outsourcing are actually expressions of fear:

  • Fear of loss of control over your most sensitive data or transaction processes.

  • Fear you won’t be Priority #1 among your provider’s multiple clients when it comes to personal attention, upgrades, etc., resulting in degraded performance and/or service quality you and your customers cannot afford.

  • Fear of hidden costs that may surface to bite you after you’ve already committed to outsourcing -- for example, consumption-based payments that might grow to unwarranted levels if your provider isn’t sufficiently focused on maximum efficiency.

  • Fear of change. Your in-house IT staff understands your mainframe, your enterprise and the idiosyncrasies of both. How could outsourcing possibly replace that?

  • Fear of failure.     

But look at the upside.

Mainframe outsourcing can boost your capabilities all around, so both you and your business customers can meet rising expectations head on, more flexibly. You can exploit resources not readily available when you have to purchase and manage everything in-house. And that can bring you:

  • Superior enterprise-wide processes that make you more efficient, provide greater visibility into your operations and enable you to reliably meet compliance requirements.

  • Up-to-date skills and expertise to deftly handle day-to-day mainframe operations but also help you plan strategically for the future.

  • Stability that comes from the excellent availability and reliability mainframes are known for, coupled with unparalleled agility necessary for adequate future-proofing.  

  • Sustainability – both the environmental kind that comes from reduced energy usage and emissions and the financial kind that comes from optimizing your costs.

  • A more solid disaster recovery plan – something that’s paramount for your customers, too -- at significantly lower cost.

  • Sharper focus, free from distractions of managing a “mainframe services” company as a sideline. Redirecting your enterprise brainpower toward innovation  allows you to strengthen or broaden your product line, expand geographically or take on other new initiatives designed to increase revenue.  

Decisions that assure your company of cutting-edge technology demonstrate leadership and improve your customers’ experience, whereas falling behind could erode their confidence in you as their partner of choice.

And with sufficient ROI from outsourcing, you may be able to sharpen your pencil when negotiating with current or prospective customers, passing along savings as well as productivity increases. A boost to the bottom line is something every business customer can easily appreciate

Concerns are normal, but you can address them up front.

A well-designed mainframe outsourcing program that includes a custom-configured solution, carefully-chosen provider and strategically-negotiated contract can overcome perceived negatives. And appropriate performance metrics and ongoing monitoring ensure you retain ultimate control, even though someone else is handling mainframe operations day-to-day.

Your customers are always mindful that they have options. If your transition to mainframe outsourcing appears seamless to them, and it results in better or expanded services for them with assured protection of their data, that will reinforce their confidence in your company. Why look elsewhere when they know you’re looking out for their best interests – and those of their customers -- as well as your own?