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Maximising IT budgets in a downturn:
Outsourcing


Faced with a harsh economic outlook for 2009, every business should be reviewing its accounts for ways to save money. This article forms the first part of a series on how to cut costs on IT during the downturn.

 


Companies rarely employ their own cleaners or electricians. Instead they turn to external contractors. Services such as couriers have all but replaced in-house delivery drivers. Accountants and banks offer external ledger and payroll processing services. Of course, the outsourcing of Information Technology (IT) pre-dates and facilitates many of these services.

The financial benefits of outsourcing are becoming more apparent to UK businesses as the credit crunch begins to bite. IT is generally more business critical than the state of your carpets and typically more dynamic than your electrical infrastructure. It is true that outsourcing can save you money, but ensuring you establish the right relationship is critical.

IT support companies can be a useful cost-saving resource in a number of areas and for most business types. They can provide backup for leave, sickness, maternity and paternity, extra hands to cover the spike of work generated by a new project, or specialist skills and knowledge consultation. This type of support is a useful first step to establishing a relationship that could lead to the long-term replacement of the in-house IT department (outsourcing).
 

Technology is constantly evolving and the investment required to keep internal expertise up-to-date is considerable and often impractical, particularly for a smaller organisations. Demand and salaries for IT staff can also cause cost issues. The current downturn will undoubtedly stifle demand for wage increases for the time being, but this effect will be minimised in areas where there are skill shortages. An outsourcing company specialising in IT support can distribute these development costs amongst its staff and clients thus offering economies of scale to all.

Outsourcing: the transfer of the management and/or day-to-day execution of an entire business function to an external service provider.


These economies lead to lower costs for you, the customer, and enable access to a far wider knowledge base.

For small businesses in particular, outsourcing IT generally makes the most sense. An SME is unlikely to have an IT Team – maybe just an individual – and the loss of knowledge that occurs when this person leaves can be devastating. By outsourcing its IT, a small business can manage this risk and enjoy the added benefits that outsourcing brings.

It is critical that someone within the organisation retains ownership of the IT system and ensures it is developed to meet business objectives. Whilst the advice of a good outsourcing partner will be focused on the requirements of your business (rather than simply the technology itself), you will need someone internally who is able to clearly express those requirements.

If you are interested in outsourcing your IT or wish to discuss some complementary cover for your in-house IT department, please do not hesitate to contact us.
 

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Delta Comtech Ltd
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Macclesfield, Cheshire, SK11 7JB

Tel: 0844 4128102
info@delta-comtech.co.uk