Outsourcing Age

Outsourcing – know your options

Friday, February 26th, 2010

(Excerpt)Different scenarios for IT outsourcing that might just give organizations better ideas than the cloud computing option.

Cloud computing is the latest buzzword to hit the IT industry the world over. However, due to connectivity and infrastructure issues locally, this model has been slow to take off, as cloud applications tend to be bandwidth intensive and South Africa’s networks have not been able to support them.

However, cloud computing is only one type of outsourcing of IT services, and there are a number of other models that could be more applicable in the local market, including full outsourcing, co-sourcing, and managed and hosted services; each of which offers different business and strategic benefits.

Full outsourcing. This scenario involves completely handing over control of the entire IT environment to an outsourcing provider, from the desktop to the network through to connectivity. The client does not have to manage the complex IT infrastructure and places the implementation, maintenance and control of the environment in the hands of a vendor.

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Tags: Bandwidth, Buzzword, Connectivity, Environment, Excerpt, Implementation, Infrastructure Issues, Local Market, Models, Options, Outsourcing Provider, Outsourcing Services, Scenarios, South Africa, Strategic Outsourcing
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Outsourcing – know your options

Sunday, February 21st, 2010

Cloud computing is the latest buzzword to hit the IT industry the world over. However, due to connectivity and infrastructure issues locally, this model has been slow to take off, as cloud applications tend to be bandwidth-intensive and South Africa’s networks have not been able to support them.

However, cloud computing is only one type of outsourcing of IT services, and there are a number of other models that could be more applicable in the local market, including full outsourcing, co-sourcing, and managed and hosted services; each of which offers different business and strategic benefits.

Full outsourcing

This scenario involves completely handing over control of the entire IT environment to an outsourcing provider, from the desktop to the network through to connectivity. The client does not have to manage the complex IT infrastructure and places the implementation, maintenance and control of the environment in the hands of a vendor.

This model is particularly useful for small and medium enterprises (SMEs) as it removes the need for them to spend large amounts of capital outlay when deploying, maintaining and upgrading their IT infrastructure. It also gives smaller enterprises access to a wide range of specialised skills that they could not afford to hire on an in-house basis.

The main benefits of this scenario are significantly reduced IT cost, access to a range of skills and resources, and reduced lead times when implementing or maintaining, as the business only needs to deal with one supplier. The relationships that outsource vendors have with their suppliers can also be leveraged, as they can often get reduced costs and pass these savings onto the client.

One thing to bear in mind is that when looking for an outsource vendor, a business needs to ensure they can deliver as promised and support the organisation’s requirements. Otherwise an enterprise may find itself locked into a contract with a supplier that cannot deliver, causing major problems for the business as well as additional expense.

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Tags: Bandwidth, Buzzword, Capital Outlay, Computing, Connectivity, Environment, Implementation, Infrastructure Issues, Lead Times, Local Market, Models, Outsource Vendor, Outsourcing Provider, Outsourcing Services, Relationships, Small And Medium Enterprises, Smaller Enterprises, South Africa, Specialised Skills, Strategic Outsourcing
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