The growing economic burden is driving IT companies to go for infrastructure resourcing to address the issue of IT resources.Today’s economic climate demands that organizations invest time, talent, and financial resources on core competencies and activities because they are big business differentiators. In order to cut budgets and headcount, CIOs are going for infrastructure outsourcing to maintain service levels. key sectors such as the financial, telecommunications, and oil and gas industries have begun outsourcing elements of their IT functions to third parties for a long time. I would like to highlight the key benefits of Infrastructure Outsourcing.
- Pying attention on core sector: Total outsourcing refers to a company handing over its entire IT infrastructure to another company in design, implementation and maintenance. This happens mainly because of differing core competencies. For example a Power company primarily wants to concentrate its major attention and workforce towards its strategic capability i.e. making generating electricity and distributing it. It realizes that IT is very important and can be helpful for the company. But it doesn’t have the necessary expertise to do it cost effectively. Hence it decides to outsource its entire IT operations to a vendor who can take care of it better keeping its cost benefit advantage.
- Back up and Recovery: Some business requirements may demand 24-hour access to networks or e-mail. Therefore, frequent power outages can be extremely disruptive. IT outsourcing services such as disaster recovery provide backup systems for companies to ensure business continuity.
- Strategic Outsourcing: This is associated with overall business strategy and decision. In this type of outsourcing, the partnership between vendor and customer is long term. It helps customers through a critical business transformation process. Strategic outsourcing reduces the cost of IT infrastructure operations workforce costs, e.g. salary, training, systems management costs. effectively.
- Risk Management: Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provide a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.
- Develop Internal staff: A large project needs to be undertaken that requires skills that your staff does not possess. On-site outsourcing of the project will bring people with the skills you need into your company. Your people can work along with them to acquire the new skill set.
- Flexible Staffing: You can bring additional resources when you need them. As soon as the work is over, you can release them. You may not need to keep permanent employees for the seasonal jobs.
- Virtualization: The hardware platform is going through the changes of emerging technologies like server and storage virtualization. Virtualization of servers and storage in a data center improves the efficiency. If a company requires very big chunk of significant data, they outsource their data center in a hosted cloud computing environment. This will enable the pool of available resources to be extended seamlessly outside the organization to resources in outsourcers hosting centers.