Please outsource your e-mail

commentary Every company I've worked at has had e-mail problems at one stage or another. I'm sure you can say the same.

Renai LeMay, ZDNet Australia You know the drill ... first, one astute soul perks his head up. "Anyone else can't get their e-mail?" he asks those around him. Then a wave of grumbling starts to roll around the office, as the entire team realises that the rug has yet again been swept out from under their feet.

"E-mail's down!" comes the universal cry.

Ten years ago, this problem would have been shrugged off as just part and parcel of dealing with a relatively new technology that your business maintained as a privilege. However, today e-mail truly forms part of the bedrock foundation upon which many corporations are built. Without e-mail, it's not just communications that grinds to a screaming halt. It's many companies' entire revenue-producing business function.

This is why it's all the more surprising to your writer that so many organisations continue to maintain their own e-mail systems, rather than handing them off to a specialist third party.

Western Australia's Department of Planning and Infrastructure is one group that has almost learned its e-mail lessons the hard way recently. The department issued a cry for outside help last month as its Microsoft Exchange-based e-mail system had started to suffer frequent outages.

"The existing messaging environment suffers from frequent outages (more than 24 hours per annum) due to a combination of hardware and software failures, e-mail corruption and human error," DPI wrote in tender documents. The organisation had "no form of failure protection of disaster recovery" for its e-mail systems, and the risk of data loss was increasing "dramatically".

If your writer could give one piece of advice to groups like DPI who are struggling with e-mail gremlins, it would be to get an external body to administer your e-mail.

E-mail is a classic example of a business support function that should be outsourced: it's a commodity; there are specialists that can do it better than you can; it can be charged as a service; and it requires technical skills which are hard to find. You should even be able to get a decent price from outsourcers, due to the economies of scale they can leverage.

There's even a previous example of a commonly used business communications system which is commonly outsourced ... its called telephony and is normally taken care of by someone like Telstra or Optus.

Let someone else handle the flood of viruses, e-mail and spam that come with e-mail. Let someone else take the call from your CEO when they can't send that crucial document that will stop the share price from crashing.

If you're nervous, you don't even have to outsource your whole e-mail operation -- start off by letting someone else filter your messages for malware and spam before they hit your front door.

Perhaps the biggest argument for outsourced e-mail is that no IT manager your writer has ever talked to has regretted making such a move -- and stories are pretty thin on the ground about bad experiences in this area.

After you've got e-mail out of the way, don't fire your previous administrators. Instead, re-dedicate the time of these valuable and experienced staff to higher matters, such as systems consolidation or upgrades -- the sort of thing that will actually drive benefits and efficiencies to your business going forward.

The thing they should have been doing in the first place, rather than babysitting a commodity piece of infrastructure.

Outsourced e-mail: a panacea or a potential nightmare? Make your views heard below this article, or drop me a line at renai.lemay@zdnet.com.au.

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Talkback 8 comments

    No golden bullet Anonymous -- 05/04/07

    Why do you assume that employees of outsourcers have a higher skill level that the organisation's own employees?

    In my experience with Fed Govt organisations who outsource their messaging systems it has been a dismal failure.

    Outsourcer employees generally have less clue than the organisation's own IT staff, and their care factor is usually pretty low.

    Security risk Anonymous -- 05/04/07

    This is all good on paper until you consider the security risk involved. Like your dirty laundry, if you are prepared for the risk of making it public knowledge then by all means.
    Email is not hard to manage if you are using the right software / hardware and it is set up correctly, it is like any system - do it right from the ground up.

    Many already outsourcing filtering Anonymous -- 05/04/07 (in reply to #320077410)

    That argument already has been weakened (in actuality, but not theory) by the number already outsourcing to the likes of MessagLabs for filtering.

    Until some heavy duty filtering app comes along that is reliable and easy to implement in-house, there is likely to be more taking this path. Taking this step then opens the mindset to taking further steps.

    onsite documentation Anonymous -- 05/04/07

    Generally, the site's documentation produced by the existing staff is unintuitive to others, limited, out of date or just not there. When all four line up the outsourcer's employees will struggle and rely on the good nature ...of the existing site staff to get up to speed. How about an electronics technician trying to fix a mother board with out schematics, not too easy eh? unless the tech has worked on before.

    Outsourcing must add to cost (above a certain turnover) Anonymous -- 05/04/07

    Many companies are turning to outsourcing, supposedly for gaining the 'advantages' of economy of scale offered by outsourcees and the focussing on core business. Some of these companies are spending 10 of $Millions doing this.

    At that level of outsourcing, there are no gains from economies of scale. I recently worked at an Australian state education department and they could easily have saved millions building their own computers rather than paying for name brands that are mainly interested in churning out new models. With their own version of an OS, they couls have had a much more manageable enterprise environment.

    I have worked as a Tech Manager for a small computer company building systems and the overhead went mainly into the salesperson's commissions (they made more than double what the builders did). It only employed a dozen people in the building of the PCs to have a turnover of several 10s of $millions. Put into any reasonably large company, making only the few configurations that the company actually needs, such a almost self-contained, compact computer-building unit would substantially lower costs and inventory overheads (less parts because less variations).

    Basically, when the turnover is sufficient to provide inhouse ecomonies of scale and support the few staff needed, there is little to justify paying someone else's overheads when that could be spent inhouse. That is the same whether it is harware, software or services.

    I think most problems come because management has failed to grasp the little that is required to properly set up and maintain such inhouse facilities and so it goes into the 'too hard' basket, outsouced above the equivalent inhouse cost and justified by 'focussing on core competancies'. I think it reflects on poor management than any real economic expediencies. The same poor management that goes into many projects that go over-budget because they are ill-conceived, poorly-planned and poorly implemented. The survey that did a time-and-motion on 500 high-level manager found that the average time spent on any one task was nine minutes. I think some think that some managers that is enough regarless of the size of the project.

    Big projects need more than a few minutes to make sure they stay on track. The same goes for providing inhouse services. Properly implemented inhouse services MUST be cheaper than paying someone else to do it (they want their profit).

    um what? Anonymous -- 05/04/07 (in reply to #320077415)

    "building their own computers with their own version of an OS, they could have had a much more manageable enterprise environment." ... um ok :-/

    "I have worked as a Tech Manager for a small computer company." and a State department. Wow, so much experience.

    "I think most problems come because management has failed to grasp the little that is required to properly set up and maintain such in house facilities and so it goes into the 'too hard' basket"

    Your post makes sense now.

    Outsourced email Ian Yates -- 10/04/07 (in reply to #320077424)

    If all you can do is attack the previous poster, don't bother to comment at all.

    Insource or Outsource? Gerard Dillon -- 05/04/07

    I have wrestled with this over a number of functions we perform. Email, phone systems, network infrastrucutre, etc.

    There is a lot to be said for insourcing. Insourcing allows us to maintain control of the priority we show to a service we provide. External providers see us as one of their many customers, and prioritise accordingly. By maintaining a key system in house we have the flexibility to focus as much energy as we want when we want on the system.

    We selectively outsource. Rather than outsourcing the "crown jewels", our email system in this case and all the sensitive data it contains, we outsource the gateway service into our email system so that viruses and spam are filtered before they arrive or leave our email environment.

    In a very small environment, outsourcing key systems like email may makes sense. In a larger environment though, there is a lot to be said for economies of scale, and the control of priority we maintain over our key business systems.

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