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Workshift
offered us the right talent to greatly improve the effectiveness
of our IT systems, which are crucial to supporting our
global business.
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According
to Meta Group’s Outsourcing
Desk Reference, approximately 70 percent of firms
are currently outsourcing at least one aspect of their
operations, with nearly all firms destined to embrace
this model by 2006.
The cost and ever-increasing complexity of running in-house
IT systems can be burdensome to firms of any size. While
outsourcing will save money, experts such as state that
financial saving should not be the only motivation for
considering it. Workshift Systems Corporation,
explains, “outsourcing is a long-term decision that
needs to be properly planned. There is an expectation
that IT costs will be automatically reduced as a result
of outsourcing, but this is not always the case. Savings
may time take to accrue, while other benefits are more
immediate.”
The long-term benefits of outsourcing include:
Increased Efficiency
– companies that endeavour to do everything themselves
typically have much higher research & development,
infrastructure and distribution expenses. These costs
must be passed along to customers, but if they can be
reduced through the economies of scale provided by outsourcing,
the savings can result in an important competitive advantage.
Reduced Risk –
Outsourcing enables firms to offload the risks associated
with running an effective IT department that is reliable
and efficient, with appropriate technology choices, adequate
training and timely maintenance.
Controlled Costs – Outsourcing releases capital for
investment in other areas of your business and allows
you to avoid large infrastructure expenditures as you
establish or grow your company. An additional benefit
is that outsourcing can even make your business more attractive
to potential investors, since capital funds can be directed
into revenue-producing activities.
Increased Reach - Outsourcing gives firms access
to world class capabilities that might otherwise be unaffordable.
It can help small firms act like big firms by giving them
access to the efficiency, expertise and economies of scale
enjoyed by larger firms. By leveling the playing field
in terms of technology, efficiency and cost-effectiveness,
outsourcing can make small and medium sized firms as competitive
as their larger counterparts. Similarly, outsourcing also
allows your company to access a higher level of experience
that you might have available in-house. You can take advantage
of the IT provider’s cumulative experience without
having the expense and hassle of hiring and training a
new full-time employee
Better Investments –
A reliable IT provider will be able to configure a system
that suits your company’s precise needs, rather than
implementing pre-bundled solutions that may contain options
you don’t require. Outsourcing ensures you pay only
for what you need.
Improved Focus on Core Business
– Removing the task of running an IT shop allows
a company to concentrate on its corporate mission. Resources,
both financial and intellectual, previously directed towards
supporting technology infrastructure can be redirected
towards the company’s core business.
Don Gibbons, Chief Financial Officer of Freebalance, Inc.,
an Ottawa-based software solution provider, explains his
firm’s reasons for outsourcing instead of hiring
an in-house Chief Technology Officer (CTO). “We previously
had dedicated internal IT management but they didn’t
always have the skillset we needed, nor was the position
properly aligned within our corporate reporting structure.
The result was a distraction for senior executives, reducing
our abilities to focus on our core business of building
software products. We approached Workshift Systems Corporation with the
goal of finding a way to fill this critical corporate
function in a different way, not so much as a cost saving
measure but as a way to improve our company’s overall
performance. Workshift offered us the right talent to
greatly improve the effectiveness of our IT systems, which
are crucial to supporting our global business. Workshift Systems Corporation helped us develop a strategic IT plan mapped to our
corporate strategies and long-term growth plans.”
As a result of the successful transitioning to an outsourced
environment, Freebalance is pleased to report a significant
improvement in the reliability of their IT infrastructure
over the past year.
At the Perley-Rideau Veterans’ Health Centre (PRVHC),
the rightsizing of many administrative departments resulted
in a reduction in IT support staff as well as having managers
assume responsibilities for multiple operational areas.
As Judie Beggs, PRVHC’s Director of Finance and Information
Services, explains, “I simply didn’t have the
time to be an IT expert. Managing people is one thing;
managing systems is entirely different. I needed access
to a specialist’s knowledge to ensure our organization
stayed current and offered a high level of service. Workshift Systems Corporation
is able to provide the expertise we need to achieve our
goals.” She adds that, “we are also gaining
substantial long-term benefits from having Workshift Systems Corporation
help us chart our course for the future.”
Outsourcing your IT can bring an additional, more objective
perspective to your company’s operations. Based on
experience, capable outsourcing providers will know what
works and what does not and can help firms break out of
their technology rut.
The increase in outsourcing’s popularity is due to
one simple fact: few firms can truly afford to meet their
technology needs. Having the right systems can be expensive
to implement and maintain. It is difficult enough to make
the right technology choices and even harder to find and
afford the good people needed to support this infrastructure.
Outsourcing allows you to rent the talent you need, provides
the ongoing training and systems maintenance required
to keep your IT operation current, and offloads what is
frequently described by executives as their biggest headache.
Ultimately, outsourcing makes companies more flexible
and agile, ready to meet the challenges of doing business
in an increasingly technological and competitive world. |
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