Posts filed under 'Why Outsource?'

IT outsourcing ‘allows companies to focus on core business’

core businessCompanies who choose to outsource their IT operations can gain a number of benefits by doing so, it has been claimed.

Chief technology officer and executive vice-president of Presidio Dave Hart has been extolling the virtues of the option in a Bloomberg BusinessWeek article that looked at the differences between outsourcing and out-tasking.

The industry expert explained that the former is a method by which the management or execution of the entire IT function of a firm is transferred to an external provider.

May 31st, 2010

SaaS just another form of outsourcing

SaaSA business software expert has highlighted the value of software as a service as a way for businesses to move forward.

In a post for ITworld, Mark Patterson explains how businesses have long been outsourcing other tasks and services to lawyers, accountant, plumbers and electricians.

He then points out that the same can be done with software and applications, through SaaS, providing a cost-effective solution and doing away with the need for expensive hardware.

May 31st, 2010

Outsourcing recovery is fragile, says EquaTerra

recessionBusinesses are stepping up their spending on outsourcing as they begin to replace outdated infrastructure, a major survey of UK IT service providers reveals.

But the growth in demand for outsourcing is still precarious, and could be held back if the economy falters, EquaTerra’s UK pulse survey reveals.

“We are seeing more infrastructure projects – datacentre, desktop services, network services. They are being looked at now because the underlying asset is at the end of its life,” said Lee Ayling, managing director for IT outsourcing UK at the company.

May 17th, 2010

Contractors ‘could see more IT outsourcing opportunities’

more opportunitiesContractors working in the UK’s IT sector could start to notice more placement opportunities as companies look to increase their outsourcing.

This is the view of IT consultancy Ovum, which said that a number of businesses are now developing long-term strategies as the economy begins to settle.

Patrick O’Brien, a senior analyst at the firm, said: “No one knows exactly how things are going to work out, whether there’s going to be a double-dip recession or whether we’re going to have a gradual recovery, but I think there’s a little bit more confidence and a little bit more visibility with businesses.

April 13th, 2010

What are the pros and cons of outsourcing?

Pros and cons of OutsourcingIt’s such a taboo subject and gets such a bad rap that it’s almost not even worth defending.  You might be better off defending socialism at a “Tea Party” rally. Okay perhaps that’s overdoing it.  It’s not that bad.

However, one mention of the word outsourcing and you get a lot of people up in arms. It’s one of those words that has just accumulated a terrible reputation over the years, whether it’s fair or unfair. When major politicians (Hello Mr. President) and influential business leaders such as Bill Gates speak out against outsourcing, you know it’s destined to become a poisonous term.

But is it fair? It seems like there are plenty of misconceptions on the subject out there. For one, outsourcing is a bit different than offshoring. Outsourcing is putting the work in a hands of a third party vendor, it could be abroad or at home. Offshoring is sending the work overseas, it may stay in the same company or not.

One thing seems certain, there have to be reasons as to why some of the biggest companies such as IBM and American Express outsource constantly. What are the pros of the outsourcing? What are the cons? These are the questions we at Business Review USA try to answer with a good ol’ fashioned list of pros and cons.

April 13th, 2010

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