Achieve high performance via outsourcing

Outsourcing of IT is certainly not a new concept, but it does have renewed focus as businesses are once again questioning whether they should hire additional employees or outsource their requirements to experts in the field. This challenge is always complex and leads to a number of internal conversations. However, for most organizations, the reasons to outsource are far more compelling than the decision to use an internal resource to provide the service.

Here are our top five reasons as to why outsourcing IT could be the best solution for your business:

Reduced staffing costs
Hiring staff can be expensive when recruitment fees, salaries, training, and other costs are taken into consideration – particularly when, after this expense, the best employees are often poached by a competitor. Rather than having the headcount and burden of an IT department, outsourcing to have a third party manage everything on your behalf saves both time and money.

Benefit from economies of scale
Unless you are in the IT business, you are unlikely to have access to the same economies of scale as outsourcing suppliers. It is thanks to this scale that outsourcing helps to drive down costs, costs that should, in theory, be passed on – at least in part – to you, the customer. What does this mean? Put simply, it means that the cost of your service delivery should be lower when outsourced.

Enhance your financial ratio
As a company, you are routinely analyzed and evaluated by external investors and potential future partners on your financial ratio, meaning turnover, profits, and employee count are assessed and scrutinized against one another for their market to book value. When you make the decision to outsource your IT function – or a significant element of it – you position yourself well to improve your ratios. How? By delivering IT services without recruiting more staff internally you have fewer actual employees, spend less on hiring top talent, and reduce your overall book value.

Being at the cutting edge is easier
If IT is not your core business it is less likely that you’ll have the in-house capacity or expertise to be at the cutting edge of technology. Identifying new advancements will continue to prove difficult in this ever-changing tech landscape. An IT services provider who does this day in and day out will have a vested interest in knowing everything there is to know about the latest technologies, and where they can be used to further advantage your business activity.

Identifying IT as a business enabler
Outsource IT service providers, like our team at itcl.biz, also provide consultancy and specialist advice. By offering a combination of industry leading advice and business planning services, outsource providers can offer insights into how your business compares to your competitors and areas of opportunity in which IT could be used to offer a business advantage.

Peace of mind
Some IT issues can be worrisome – disaster recovery, data security, business continuity are all common concerns. Outsourcing to an expert supplier can alleviate many of these worries. And, knowing your IT function is in safe hands you can focus energy on delivering other key business elements. Furthermore, having a robust contract in place should set out roles and responsibilities, as well as service levels, and the consequences and course of action if these are not met, giving you total peace of mind.

Embrace outsourcing
IT is no longer seen as an operational department – it is at the forefront of conversations for offering a strategic advantage. Many businesses recognize that they do not have the expertise to maximize on this advantage and therefore outsource IT to a third party supplier who is an expert. Additionally, as the landscape becomes under increasing threat from data security breaches and also physical breaches of the IT infrastructure, it is more important than ever before to have robust policies, processes, and procedures in place to firstly avoid any attacks, and secondly to recover as quickly as possible in the event of an attack. Again this leads many organizations to outsource IT and rely on a third party who has a greater level of expertise in these areas than they do themselves. Ultimately this leaves businesses with more time and resource to focus on core capabilities and making progressive strides forward in delivering – and exceeding – all areas of their business plan.

Find out more about how ITCL can help with your outsourcing needs.

Optimizing government monitoring and evaluation

If an organisation provides a service, how do they know how well it is being delivered if they do not utilize effective monitoring and evaluation processes? How do they fulfil reporting requirements and ensure an appropriate audit trail? The reality is that for many private and public sector organizations services are delivered ‘blind’ – that is, without any transparent idea of quality, cost, or reliability. On the journey to maturity, the next step is often to track data in spreadsheets – a method that also requires manual data management, taking up valuable employee time, and often leads to loss of data and issues with validity. So, how to overcome the issue?

Rethinking how we evaluate

Government organizations are now proactively looking at technology solutions to provide automated monitoring, evaluation and reporting that insights of value. There are a variety of software solutions available on the market and it is typically advisable to use the services of a trusted technology specialist that is vendor-agnostic. With expert advice, organizational requirements and suitable software options will quickly be identified. And, to streamline the process further, your specialist can also manage the implementation and ensure all data feeds and reports are set up for optimum results.

Starting with the framework

The technology implementation does not come first – initially, as the organization, you decide what you want to measure, why, and how. Some of this data might already be captured, and some might not be. Therefore, a framework for the monitoring and evaluation system is developed and, as with all measures and KPIs, all framework elements should follow the SMART plan: Specific, Measureable, Accurate, Reliable, and Timely.

Following the initial planning phase, you will work with your specialist to develop a balanced scorecard, or multiple scorecards, that combine different KPIs dependent on the reporting that is required. It is important to involve a number of employees within the organization in these discussions to ensure an effective roll-out of change management.

Benefitting from improved optimization

Governments who move from manual to automated monitoring and evaluation should expect the following benefits: the client is better able to:

  • Employees, senior management, and stakeholders have more accurate data and reporting accuracy.
  • Access to a wider range of reports to aid decision making.
  • A trusted audit trail.
  • Reduce employee time spent producing reports which in turn will reduce expenditure on monitoring and reporting.
  • Minimizing the loss of data as it is centralized and not held locally by employees who may leave the organization.
  • Standardization of data capture and reporting across the government organization.

Full automation from fay one

Full automation is the key objective here but it is important to note that governments should not expect to achieve a comprehensive remedy after the initial implementation. As with most migrations, an intermediate step of semi-automation is typically wiser and in the long term more effective. It also gives time for employees to become familiar with the changes to their manual processes, to new automation, helping organization to build trust and appreciation of the new system and processes.

Get in touch to discuss your requirements and to find out how ITCL can help improve your organizational monitoring and evaluation processes.