With outsourcing possibilities today, it seems possible that you could actually run an entire company without ever hiring a single employee.
While you may already outsource some aspect of your business - such as recruitment or e-payments to increase efficiency and cut costs - another area to consider is IT support.
With the outsourcing possibilities today, it seems possible that you could actually run an entire company without ever hiring a single employee.
Asides from saving money, outsourcing helps to improve company focus. It is not practical to try to do everything; outsourcing allows you to focus on your core competencies while another company focuses on theirs, according to the Outsourcing Institute's - Outsourcing Index 2000.
Savings can be made by eliminating the costs associated with hiring an employee such as management oversight, training, health insurance, employment taxes, and retirement plans.
According to the Index, your return on investment (ROI) is much greater when you outsource information technology to a firm that specializes in the areas you need. Outsourcing IT management allows you to benefit from the collective experience of a team of IT professionals. Outsourced IT companies usually require their IT staff to have proper industry training and certifications as well.
If you don't have anyone in your company who can manage your IT needs and hiring a new employee is not in the budget, outsourcing can be a feasible alternative, in the long-term and for immediate support. If you do have someone in your office that is good with computers or accounting, it's likely that's not what they were hired for. Outsourcing allows you to maximize your employees' skills - the skills they were hired for.
Werner Baumgartner, Dubai based businessman who founded his own company White Oryx, said he would like to outsource his IT needs for these reasons. "In my new company I'd like to outsource as much as possible. My previous employer liked to keep everything in-house," he said. Trying to do everything yourself will sabotage your restructuring efforts.
Keeping up with technology required to run your business is expensive and time consuming. Professional outsourced IT providers work with multiple clients and need to keep up to date with industry best practices, so they typically know what is effective and what's not. This kind of knowledge and experience dramatically reduces the potential risk of implementing a costly, incorrect decision.
Some risks also need to be considered.
Handing the responsibility of an area of your company to someone else is always stressful. Questions will arise as to whether you chose the right person and if they can be trusted.
Something to consider is that some IT functions are not easily outsourced.
Be sure the outside vendors are qualified to take care of your greatest needs.
You will lose control of some part of your company.
Some critics argue that an outside vendor will never be as effective as a full-time employee while other concerns include confidentiality of data and disaster recovery. However, a supervisor that is knowledgeable in managing an IT staff member will usually be required.
The rewards of outsourcing include access to the latest and greatest in technology.
Software and hardware rapidly becomes obsolete in this industry. It can be tough for one person to stay up to date with everything. A specialist IT company will have better insight into what skills to look for in an employee - offering you highly qualified staff.
A key aspect to consider when outsourcing IT needs is the need to have a vision and goal for the project in mind, and to seek out the professionals to implement specifics. Experts will be able to provide alternate solutions and options that will help you accomplish your goals. One of the biggest myths among small- to mid-size companies looking to outsource IT projects is that they need to have a specific project outlined in detail before they consider outsourcing.
However, it will be more effective to think about outsourcing up front, when your strategy is being formed. That way the strategy dictates the process you and your outsourcing partner will use to form and implement a solution.
© Zawya BusinessPulse 2013
