Why outsource?
IDC's Kathy Benson says the reasons for outsourcing have changed over the last few years. Before, the number one reason would have been for a financial saving, and while this is still a core motivator, Benson says it has dropped to number three on the list.
"A lot of companies are realising they can't measure the cost savings, especially if they have contracts that have spanned a few years--how do you measure what you would have been spending if you didn't outsource," says Benson.
According to Benson, the top three reasons to outsource are:
- To gain access to the specialist skills and resources provided
- To allow the company to focus on its core business; and
- For the cost benefit.
From John Grant's experience, companies opt for outsourcing when they are either desperate or dragged to it. Grant is the CEO of IT integrator Data#3 and, similar to Benson, he sees the motivating factors fall into three areas:
"The first one is that they have an unmanageable situation on their hands, such as a loss of resources, they are in trouble and they need some help. The second is they want to cut costs; and the third reason is that it is part of a national or global strategy, so other states fall in line," says Grant.
Whatever your core reason, there are many benefits in outsourcing your network management. For Mencinsky one of the main benefits was the 24x7 management time. "24x7 is a great thing, people here work long hours and strange hours and [now] there is always help on call," he says.
Wardale says cost was a secondary consideration for Minolta QMS, with the total management and the feeling of security being the main benefits.
What to do
Once you have decided to take the plunge into outsourcing your network management, the hard work begins. Now it is time to sort out exactly what you want from your provider, what parts of the business you want to outsource, what to do with your staff, and which provider to go with.
Doug Oates, general manager of managed services provider Pihana Pacific, says before companies approach a provider they should first figure out what they want to outsource--which applications are critical to outsource and which components of the infrastructure they want to farm out. He says deciding this will help choose what company to go with.
"If they want to hand over everything to an outsourcer, then it may be a model for more of an EDS or CSC who will take over everything including staff," says Oates. "That isn't us, they can retain control of their hardware."
Data#3's Grant, says one of the first decisions to make is who is going to take responsibility, the service provider or the company. Sorting these issues out now will save grief later on.
"If [we take control], then we have management responsibility, if we take on their people they have to take on instructions from us as we are responsible for meeting the company's goals," says Grant.
