One plausible solution for addressing management and governance of information technology within a firm is to outsource the entire function or select pieces of the IT department. Whether it is a small to medium sized entity lacking the capacity for a full-time IT staff or a Fortune 500 company looking for specialized support, outsourcing IT needs has become increasingly popular amongst many different industries. A simple Google search can result in a plethora of independent contractors and consulting firms offering network integration services, business application development, web based solutions, technical support, corporate relocations and a whole host of other services. As part of this assignment, David Smith, a senior technology and networking engineer for ICorps Technologies was interviewed regarding the use of IT outsourcing within businesses in and around Boston and New York City. For small to medium sized entities, the most common IT function outsourced is overall IT consulting. Due to capacity issues within this size of business, there just isn’t a need for a full-time IT position. Issues such as setting up the initial network, trouble shooting daily problems, installing updates,and 24/7 monitoring can be accomplished via quarterly visits and constant communication. Moreover, the most beneficial aspect of outsourcing is the high level of documentation the IT consultant is required to maintain. At ICorps, the Sr. Engineer is required to have all network and IT related procedures completely documented and is obligated to keep a secondary consultant apprised of any pertinent system information. When a full-time internal IT employee leaves, they typically take all the technical knowledge and overall company experience with them. Unless the entity and management have done their due diligence in regards to process documentation, turnover can cause massive problems. Not so when this function is outsourced. Transitions occur seamlessly even if it is the IT consultant who has moved on to another company. Additionally, this interview shed light on some of the IT outsourcing needs of much larger entities. Outsourcing the CIO position occurs with reasonable frequency. Whether it is a temporary situation aimed at updating and further developing a current IT system, or the entity is using the connections a company like ICorps posses to fill a full-time CIO position; the benefits are fairly obvious for a firm whose own IT employees may be inundated with covering the extensive daily desktop support needs. Other uses of IT outsourcing for large companies include outsourcing special projects, i.e. Cisco ERP implementation, obtaining expert advice or completing small tedious projects that no one wants to address such as transferring massive directory databases etc. Outsourcing information technology has several benefits and risks one should consider prior to making any irrevocable decisions on the matter. In terms of benefits, you have the high level of systems documentation, greater access to technological skills that are not available internally (when working with a consulting firm you have the entire firms expertise at your disposal), improved company focus, elimination of the need to maintain competent IT staff, and the ability to hold someone else contractually responsible for a very important business function. In terms of risks, there is the concern that the IT individuals you are relying on are not very knowledgeable in their field, the fear that sensitive company information could be compromised, possible breach of contract by the vendor resulting in an “IT crash” and an inability for your company to complete vital daily tasks, and loss of control over crucial IT decisions. In any event, a competent manager needs to weigh all potential benefits / risks of IT outsourcing and see how the results correlate with the specific information technology needs of their firm.
As part of this assignment, David Smith, a senior technology and networking engineer for ICorps Technologies was interviewed regarding the use of IT outsourcing within businesses in and around Boston and New York City. For small to medium sized entities, the most common IT function outsourced is overall IT consulting. Due to capacity issues within this size of business, there just isn’t a need for a full-time IT position. Issues such as setting up the initial network, trouble shooting daily problems, installing updates, and 24/7 monitoring can be accomplished via quarterly visits and constant communication. Moreover, the most beneficial aspect of outsourcing is the high level of documentation the IT consultant is required to maintain. At ICorps, the Sr. Engineer is required to have all network and IT related procedures completely documented and is obligated to keep a secondary consultant apprised of any pertinent system information. When a full-time internal IT employee leaves, they typically take all the technical knowledge and overall company experience with them. Unless the entity and management have done their due diligence in regards to process documentation, turnover can cause massive problems. Not so when this function is outsourced. Transitions occur seamlessly even if it is the IT consultant who has moved on to another company.
Additionally, this interview shed light on some of the IT outsourcing needs of much larger entities. Outsourcing the CIO position occurs with reasonable frequency. Whether it is a temporary situation aimed at updating and further developing a current IT system, or the entity is using the connections a company like ICorps posses to fill a full-time CIO position; the benefits are fairly obvious for a firm whose own IT employees may be inundated with covering the extensive daily desktop support needs. Other uses of IT outsourcing for large companies include outsourcing special projects, i.e. Cisco ERP implementation, obtaining expert advice or completing small tedious projects that no one wants to address such as transferring massive directory databases etc.
Outsourcing information technology has several benefits and risks one should consider prior to making any irrevocable decisions on the matter. In terms of benefits, you have the high level of systems documentation, greater access to technological skills that are not available internally (when working with a consulting firm you have the entire firms expertise at your disposal), improved company focus, elimination of the need to maintain competent IT staff, and the ability to hold someone else contractually responsible for a very important business function. In terms of risks, there is the concern that the IT individuals you are relying on are not very knowledgeable in their field, the fear that sensitive company information could be compromised, possible breach of contract by the vendor resulting in an “IT crash” and an inability for your company to complete vital daily tasks, and loss of control over crucial IT decisions. In any event, a competent manager needs to weigh all potential benefits / risks of IT outsourcing and see how the results correlate with the specific information technology needs of their firm.