Outsourcing IT offers better deal than many managers realise

1 min read

A "reluctance to undertake capital expenditure and a 'necessary evil' attitude to technology" are among the reasons for the continuing rush to IT outsourcing.

So says Richard Barker, managing director of independent IT services firm Sovereign Business Integration. And he adds: "The resultant poor skills and a lack of senior level understanding of, and commitment to, IT is leaving businesses vulnerable to system failure and data compromise." Barker suggests that many businesses "are reluctant to, as they perceive it, relinquish control to a third party. But in reality these organisations currently have minimal control over IT". Data, he observes, is actually insecure, even when located within an organisation. Also, operational performance is jeopardised by limited IT skills, he says, while business change or expansion is compromised by the lack of IT expertise required to assess the merits of "new technology opportunities". Barker advises that outsourcing IT allows organisations to "enjoy far greater control" over their business processes. Why? Because, he insists, "working to a clearly defined service level agreement and contract, the contracted organisation will ensure networks and software are maintained to deliver continual high levels of performance". That being the case, he contends that outsourcing the IT function not only delivers "far more control", but can also "significantly drive down costs by leveraging economies of scale and providing low cost access to a broad, experienced skills set".