Tuesday, July 28, 2020

Outsourcing IT service

Why outsource your IT department?

For various reasons, it is sometimes useful for a business to change the sourcing model of supporting services from internal (insourcing) to external (outsourcing). The reasons for such a change of model in the company may be, for example, the following:

The need to include mechanisms for economic regulation of the cost and quality of services when distributing costs between centers of financial responsibility. This will ultimately lead to a decrease in direct IT costs (the business will only pay for what it is really willing to pay for), or to a more targeted use of IT services (which also leads to cost optimization).
Inclusion of competitive mechanisms of the service division. This can lead to improved quality of IT services.
Decrease in the number of office employees (due to the withdrawal of IT specialists outside the parent company).
Focusing on the core business of the company.
Increase in performance indicators per employee (for example, to increase the investment attractiveness of the company).
Transformation of an IT service from an expense division to a profitable one.
Pros of the outsourcing model
As you can see, the transition to the outsourcing model has a lot of advantages. However, this approach, along with its advantages, always has its disadvantages and pitfalls. The most common ones are: Network administrator roles and responsibilities

Immaturity of the external market for IT services (it is very difficult to find a good and reliable IT service provider)
Difficulty choosing from available providers
Coordination and high efficiency of the existing team of IT specialists, already providing a sufficient level of service
The risk of reducing the availability and quality of IT services when changing an IT service provider.
What to do in this case, when “you want to” and “inject”?
In this situation, the most correct solution is often outsourcing your own IT service (to an external legal entity).

Accordingly, the main reasons for this are as follows:

High level of trust in working IT specialists
The need to outsource all major IT services.
Minimizing risks when switching to IT outsourcing (your own team, in any case, is already "in the know" and therefore the risks of reducing the level of service or the stability of IT services are reduced to zero)
Desire to retain the existing IT team.
Retaining control over IT (for example, as a co-owner of a new IT company).
However, this project also has its own nuances that must be taken into account. We have experience in successful projects of outsourcing IT departments to external companies. 

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