Understanding the Benefits of Outsourced IT services

by

Martin Lobo

Businesses often choose to outsource their information technology (IT) systems and services for a variety of reasons. The present time has seen a remarkable development in offshore IT industry. In today’s business environment, almost every company wants to produce a quality product faster and cheaper than their competitors. Choosing an offshore service provider can save companies 25 percent off the cost of outsourcing to a domestic provider. A recent report also indicates that most offshore outsourcing efforts save 15 percent to 20 percent when all costs are considered, with best-practices firms achieving 25 percent to 30 percent savings. IT outsourcing often includes data center operations, desktop and help desk support, software development, e-commerce outsourcing, software applications services, network operations and disaster recovery.

As outsourced IT services have become a part of the business strategy, more and more companies are moving towards outsourcing their IT development needs. It has without a doubt become a competitive necessity in the era of e-business. While companies that outsource IT services enjoy many benefits, saving money is one of the most compelling reasons for doing so. Low cost of development is one of the most beneficial factors of outsourcing. Outsourced IT services include some obvious benefits, like giving you an opportunity to focus back on the core issues of business, reallocating capital investments, gaining access to wider knowledge base and professional resources. When you have inflexible deadlines, outsourcing can remarkably reduce your time to market, as these companies are specialized in deploying a project on time with satisfactory results. Usually IT outsourcing services make up fixed costs for companies that do not outsource. And businesses that choose to outsource IT, whether offshore or through a local contractor, convert those fixed expenses to variable ones, thereby releasing capital for use in other areas. There are a large number of businesses who are increasingly turning to outsourcing services to lower delivery costs and gain access to diverse IT skill sets. A company having experience will be able to provide you better solutions than amateurs. It is because they have a better understanding of the industry and can develop a solution that can meet present and future needs. Outsourcing IT services allows business managers to focus on primary goals and objectives. While outsourcing IT systems and services creates a more equitable playing field between small firms and large enterprises, it is essential for you to do research about the company to be hired for your services. A good track record is necessary to determine their professionalism, commitments, capabilities and skills to accomplish the tasks properly.

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Submitted by: Kingston Amadan

So much has changed in the last several years after 9/11, and yet most businesses are still inadequately prepared for disastrous situations. Not only are they vulnerable from the threat of terrorism, but from security and natural disaster standpoints as well. While a terrorist act poses a substantial threat to business operations; data loss, internal and external theft, floods and fires can be just as harmful. Unfortunately, of the few businesses that have some semblance of a disaster preparedness plan, there is still little consideration given to business continuity management. When disasters happen, not only do businesses need to be prepared to immediately offset the effects of the detrimental event, they must do so while maintaining core operating functions. Disaster preparedness without continuity management can be likened to fortifying a strategic position without a progressive plan of action. What can make things more complicated is the tendency for businesses to implement a disaster preparedness plan without fully considering the consequences.

A good disaster preparedness plan shouldn’t hinder a businesses ability to continue functioning. Initiating a disaster preparedness plan that will protect the interests of the business should be an all inclusive affair, with due diligence given not only to limiting damage from the situation at hand, but to keeping operational status. Given the uncertainties faced by businesses in the post 9/11 world, continuity management can often mean the difference between success in the face of adversity or a complete loss of business. So often, companies take steps to limit their loss liability, but rarely consider the fact that most loss liability can be avoided altogether with the proper safeguards in place. A well thought out business continuity management plan, which should include a contingency centered around disaster preparedness, can prove triumphant in the face of what would otherwise be considered tragedy. As the old saying goes, “An ounce of prevention is worth a pound of cure”.

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