The increasing complexity of new technologies has led to a need for rapid transformation among modern enterprises. As the need to do more with less continues to become more prominent, today’s CIOs have been challenged with better aligning IT with business strategy, realizing greater levels of organizational and operational efficiency, adopting and integrating the latest in digital technologies, and achieving all of this while simultaneously reducing costs and becoming more productive than ever before. For many, this has meant leaving traditional business models behind to embrace a more integrated approach to IT delivery.
An organization’s IT department is a complex environment made up of hardware, software, and computer networks, all of which are needed to enable the performance of key business functions and workflows such as account and financial processes, customer relationship management, and email. And to no surprise, an organization’s ability to use these functions reliably and efficiently is what determines how successfully it operates. Meaning, how an organization chooses to architect, configure, and manage its infrastructure has a direct impact on its ability to compete in the digital marketplace.
Outsourcing, due to its ability to enable digital business, has continued to grow in popularity within the IT community. However, many are still hesitant to leverage outsourced solutions due to the cost, production, and compliance issues often associated with IT outsourcing. Although each business is unique, and thus, faces unique business challenges, outsourcing offers the strategic customization needed to fulfill an organization’s individual service requirements.
Here are 2 major benefits of IT infrastructure outsourcing that all modern enterprises can take advantage of:
Controlled and Reduced Costs
Employing resources in-house can be very beneficial, but it can also be very expensive. Rather than incurring the costs associated with onboarding, training, and qualifying internal employees, organizations can choose to allocate those duties and responsibilities to outsourced service providers. Choosing to outsource critical IT functions allows organizations to be able to take advantage of set monthly fees based on usage. Not only does this offer greater financial predictability, but it also enables organizations to leverage the economies of scale, lower cost structure, and learned efficiencies and expertise of their service provider.
Additionally, it’s important to remember that technology has an expiration date. No matter how innovative or advanced a piece of hardware may be at the time of purchase, the reality is it will become outdated and less productive over time. In most cases, outsourcing offers cloud-hosted solutions that allow organizations to rent hardware rather than purchasing it; ultimately creating a lower total cost of ownership and freeing up resources for more pressing initiatives.
Expertise & Innovation
For most businesses, IT is not a core competency. Meaning, it’s not in an organization’s best interest to allocate too much time or too many resources towards fulfilling IT needs. Partnering with outsourced managed service providers enables modern enterprises to alleviate internal resources of the responsibilities of managing non-strategic business initiatives, and allows for a greater emphasis to be placed on those tasks and projects core to its business.
In addition to making more efficient use of internal resources, IT outsourcing provides greater access to expertise and innovation. By transferring IT responsibilities to an external service provider, organizations are able to leverage the knowledge, experience, and strategic expertise of individuals who specialize in IT management. Not only does this help to increase operational efficiency, effectiveness, and productivity, but it also enables businesses to leverage the newest and most innovative systems and technologies without having to worry about funding.
The customer experience is at the heart of digital transformation, and organizations must foster a culture of constant evolution and cross-functional collaboration in order to compete in today’s digital landscape. Although outsourcing contradicts the traditional ‘command and control’ business model, it helps organizations achieve the agility and flexibility needed to rapidly adapt to changes in business and market demands.
Interested in learning more about how outsourcing your enterprise’s IT infrastructure can transform operational capabilities and enable digital business? Download our whitepaper, Benchmarking Your Internal IT Costs.