The Hub Commentary_
The other consideration is value to the business and uniqueness to the business. Those services that are similar across industries and even within your industry, lend themselves to outsourcing. Cost saving is not the only reason and in the long run, outsourcing is often not cheaper than in-house. However, decisions need to be made how to best use your in-house resources and right source the commodity.
Outsourcing occurs to drive change. Some of the change is adherence to standards driving down the cost of services as well as support for services where not all services are created equal. Both of these changes are difficult to drive from within a business unless there are good business service management practices in place driving cost and value discussions.
It is relevant to consider the right sourcing option for all services and right source the environment to drive change and allow for flexibility. As part of the sourcing engagement will how you will measure and monitor the service provider. This is critical to insure perception and reality are in synch. Managing the relationship of the service provider becomes the new role of IT as part of the end-to-end service provided by the business.
How are you right sourcing IT?
There is a misconception that switching to SaaS or a cloud-based IT infrastructure is solely a cost-savings measure. The reality is, most companies today are looking to switch to SaaS for its convenience and simplicity – not cost savings alone. (Read Full Article…)