KC's Blog

a personal journal by an addictive geek

10 hidden facts to consider when outsourcing IT

Posted in Information Technology on January 29th, 2012 by Kent

The 10 things from TechRepbulic called it 10 problems with outsourcing IT but I’d like to call them hidden facts instead.

Here they are:

1. Real cost, aka the hidden costs, such as travel time, learning skills, that could be easily overlooked.

2. Time factor. Things like when it’s emergency, you never see them being onsite on time.

3. Familiar with network and system. A qualified in-house IT runs the system much better.

4. Employee relationships. Who cares about your people other than your problem and your machine?

5. Liability. Without a careful security plan in place, everything can become a liability. You never know when data is accidentally going to walk off on an external hard-drive or be left in a car and stolen.

6. Loss of work. Time is critical. The loss of productivity because of the computer down can be quite costly.

7. Priority. Here is the catch. The company that spends the most will get top priority. If that’s not you, it’s more likely you will get bumped down. Earning a high priority spot in your outsourcing company usually requires you spending a lot more billable hours to them. We are both in the business.

8. Morale.

9. Continuity. Lack of consistency could happen when a variety of engineers step in and solve issues differently, etc..

10. Control. Without an IT in house, you have lost control of your own network because you have no control over to an outsourcing company.

I am an in-house IT. While I still respect these outsource IT service companies very much, I couldn’t agree more what the author of this concluded.

The outsourcing issue will be argued back and forth until IT is no longer relevant. I have seen its effects from nearly every side and rarely does it work as well as those initiating the process would hope. Of course, it’s not a completely flawed system. But a lot of issues get overlooked when the idea of saving some salary comes to mind. Choose wisely where your IT dollars are spent. The returns could make or break your company.

I particularly like the last sentence.

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