Outsourcing: the SME market is ready for it

by | Jan 17, 2008 | Business Approaches & Methods

Cost reduction, lack of available resources, focus on the core competences. These are just some reasons to start considering outsourcing of IT activities. Big companies are already used to this way of working. Right now the SME market seems to be ready. On a daily basis I meet SME company owners who consider outsourcing some parts of their IT. Their motives differ, their “fear” is identical.

It has already been proven that outsourcing of IT can have many advantages. That’s why I strongly encourage everyone to go for it.  The advantages vary depending on the situation: more flexibility, continuity of supply, availability of knowledge, efficiency, productivity and cost savings. To make sure that outsourcing is successful you will have to start working in a different way. Probably you will be afraid of losing control. This does not have to be the case. But for sure you will be more relying on a third party than before.

As an outsourcing organization you will have to acquire professional knowledge about the ways of managing a third party. Believe me, this is something completely different compared with managing regular procurement contracts. The demand will change continuously. You will have to combine all the existing request from your organization. A well-thought-through functional design will be the input for your supplier.

In the beginning this will feel unnatural and complex. After some time it will lead to a more professional IT service. A clear definition from the demand side will always lead to a better result. The fact that you will cooperate with full time IT professionals will increase the quality level of the solutions. And outsourcing will lead to more cost transparency.

If you organize your outsourcing project in a proper way, there is no need to be afraid!


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