Information Technology (IT) Outsourcing

Are you aware that since the year 2000, over 50% of all IT services purchased in Canada and the United States were outsourced?

And the technology meltdown in the early 2000's did not change things. Outsourcing has continued to grow since then and today accounts for well over 55% of IT Services.

However, the industry has evolved in the quality and type of outsourced tasks completed. In the early part of this decade, outsourcing was a large company phenomena. Outsourced contracts could take 6 -12 months to negotiate and were typically worth millions. Today, a small company could have some on the job in less than a week - even in 1-3 days for small tasks.

Web 2.0 technology has allowed small companies on both sides of the oceans to connect and create relationships. Websites such as elance help people connect and share information - not only about the jobs to be completed, but the quality of buyers and sellers.

Information Technology Outsourcing: Beyond Cost Containment

A typical IT outsourcing solution can cut costs 15 - 40%. But for the small and midsize business, IT outsourcing can bring resources and talent that it could not afford in its home country.

In addition, changes in technology are evolving so quickly that even the big players can have a hard time keeping up. When you outsource IT, you are in essence, outsourcing the task of staying abreast of technology.

Your offshore IT provider is now bearing some of the risk. They know that they miss a trend, or do not upgrade key-technology, your company will leave and go somewhere else. The should be investing heavily in intellectual assets and information infrastructure and recruiting highly skilled people.

The economic engines are revving up in many countries. New players are emerging daily and your outsourcing provider knows that they need to stay abreast if they are going to stay in business.

What Business Are Using Offshore IT solution?

We will skip for now, the larg(er) companies withh 1000 - 50,000 employees (if not more). The Web 2.0 outsourcing companies range from 5 - 500 employee or they are large companies that have an IT department of similar size.

Typically they view IT as a strategic and competitive resource. They may be growing fast and have limited resources, yet they have a future-looking and progressive view of the field. Is this you?

What you should gain from Outsourcing IT

Cost reduction, cost reduction, cost reduction, yes? That's a good beginning.

You need to have a company that is large and broad enough to get things right the first time. You don't want freeze-ups. You don't want your LAN going down and you don't want irate customers calling as you ramp things up.

Can your new company come in, switch out your LAN, move to windows NT, upgrade your software and systems - whatrever you are doing - and do it in the background? You want leave Friday afternoon and walk in Monday morning with new systems in-place and flawlessly executed.