The following interview took place between Mossey Granfield (MBA Student) and David Smith (Senior Technology and Networking Engineer for ICorps Technologies) on July 7, 2009 at approximately 11:30am. David Smith is the IT consultant that my company, Fortis Management Group, LLC (7 employees total), uses for all IT functions.
ICorps Technologies was started in 1994 and is a full-service IT department for businesses in and around Boston and New York City. Services include Network Integration, Business Application Development, Web-Based Solutions, Support, Corporate Relocations, and overall IT consulting. ICorps is utilized by many different industries, regardless of size, for many different facets of information technology.
The most common function outsourced to ICorps, based on this interview, is the IT consulting function used by my own company. For small to medium sized entities, there just isn’t a need for a full-time internal IT position.Issues such as setting up the initial network, trouble shooting daily problems, installing updates, 24/7 monitoring etc. 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 etc. completely documented and is obligated to keep a secondary consultant apprised of all pertinent information. When a full-time IT employee leaves, they typically take all the technological 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.
Without going into a detail explanation of all the services ICorps Technologies provides, it is clear how beneficial outsourcing the IT function can be for small and medium sized firms. Conversely, IT consulting can be very beneficial to large private and publically traded companies. Outsourcing the CIO position occurs with reasonable frequency. Whether it is a temporary situation aimed at updating or further developing a current IT system, or they are using the connections a company like ICorps posses to fill a full-time CIO position, this can be very useful for a company that utilizes all internal IT employees to cover the extensive desktop support needs. Other uses of IT outsourcing for large compananies include outsourcing special projects (Cisco ERP implementation) or small tedious projects that no one wants to address (transferring massive directory databases etc.)
Strengths: 1.Budget costs. 2.Diversity of skill level. 3.24X7 support. 4.More up to date on emerging technology because consultants work with it more and not confined to one business model. 5.Consultants can be hired for specialized projects that need certain expertise. 6.Partnerships and escalated support (Example: ICorps is Gold Partners with Microsoft and can get level 1 support during major down issues) 7.Managed Services (ICorps supplies managed care printers, firewalls, backup solutions) You pay a monthly fee for the device and they support it, manage it, replace it when it is out of date. This cuts costs on purchasing equipment in the long run. 8.Internal IT guy leaves the company, he can take a lot of info with him.
Weaknesses 1.Budget Costs. At a certain growth point it does make sense to hire full time IT (I have many that have both outsourced and onsite.) 2.People like having someone onsite that can immediately look at issues.
I have a ton of notes and I can follow up with Dave at any time regarding further questions. I am not sure what role this interview will play in our overall project, but I definitely think this perspective is very interesting. Just to maintain some consistency regarding the IT interview checklist, I ran through all these questions (see below) with Dave seeing that he is basically the IT manager for my company. Let me know what you guys think. 1.Governance a.All IT functions are outsourced at Fortis. I am the liaison between Fortis and ICorps and am responsible for all communications / system maintenance that is completed by Dave Smith (outsourced IT manager). b.N/A c.Both equity partners at Fortis make the final decisions regarding all IT governance. d.This system of IT governance works very well considering the size and capacity of my firm.
2.Budget Management a.An IT budget is submitted by Dave to both equity partners for a basic year of service. This budget is then revised based on what other IT tasks are to be completed outside of the normal service. Any unique issues are dealt with accordingly and billed outside of the service contract (i.e. budget) b.Certain IT items such as software expenses, basic network maintenance etc are allocated across the client base an included as an expense in their quarterly retainer fees. All IT expenses are charged as G&A internally c.All IT related decisions are made by the equity partners in correlation with advice and guidance provided by Dave.
3.Outsourcing a.All IT functions at Fortis our outsourced to ICorps Technologies, Inc. b.Because all IT functions are outsourced all Fortis team members are able to focus their entire attention on their daily tasks. Costs are also kept much lower because a full-time employee is not utilized. Conversly the timing of visits can be problematic. If our IT consultant is dealign with an emergency at another client he certainly can't be in two places at once. Moreover, ICorps can raise billable rates to a certain level before we would consider taking our business elsewhere.
4.Implementation of Past Projects a.Fortis Management Group, LLC was created in 2005. Accordingly, the only IT projects that have been addressed were setting up the network and allowing for remote access so employees can telecommute / work from the field. b.Not Applicable c.Not Applicable
5.Forecast of Future Projects a.Fortis needs to make all historical tax files / permanent client files electronically accessible versus the current manual document set up. Additionally, the main facility will be relocated to another office park in Wellesley. An IT issues related to the move need to be addressed prior. Furthermore, Fortis needs to update all security systems to be in compliance with the new Mass Data Security Laws that take effect 1/1/2010. b.Out of necessity.
6.Key Issues a.Reaching compliance with the new Mass Data Security Laws that take effect on 1/1/2010. b.Scanning and making electronic versions of all permanent client files / historical tax returns c.Making a successful move to a new office d.Increasing level of communication / flexibility between clients and staff within the field e.Taking advantage of any new IT innovations to creating competitive advantages for Fortis.
The following interview took place between Mossey Granfield (MBA Student) and David Smith (Senior Technology and Networking Engineer for ICorps Technologies) on July 7, 2009 at approximately 11:30am. David Smith is the IT consultant that my company, Fortis Management Group, LLC (7 employees total), uses for all IT functions.
ICorps Technologies was started in 1994 and is a full-service IT department for businesses in and around Boston and New York City. Services include Network Integration, Business Application Development, Web-Based Solutions, Support, Corporate Relocations, and overall IT consulting. ICorps is utilized by many different industries, regardless of size, for many different facets of information technology.
The most common function outsourced to ICorps, based on this interview, is the IT consulting function used by my own company. For small to medium sized entities, there just isn’t a need for a full-time internal IT position. Issues such as setting up the initial network, trouble shooting daily problems, installing updates, 24/7 monitoring etc. 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 etc. completely documented and is obligated to keep a secondary consultant apprised of all pertinent information. When a full-time IT employee leaves, they typically take all the technological 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.
Without going into a detail explanation of all the services ICorps Technologies provides, it is clear how beneficial outsourcing the IT function can be for small and medium sized firms. Conversely, IT consulting can be very beneficial to large private and publically traded companies. Outsourcing the CIO position occurs with reasonable frequency. Whether it is a temporary situation aimed at updating or further developing a current IT system, or they are using the connections a company like ICorps posses to fill a full-time CIO position, this can be very useful for a company that utilizes all internal IT employees to cover the extensive desktop support needs. Other uses of IT outsourcing for large compananies include outsourcing special projects (Cisco ERP implementation) or small tedious projects that no one wants to address (transferring massive directory databases etc.)
Strengths:
1. Budget costs.
2. Diversity of skill level.
3. 24X7 support.
4. More up to date on emerging technology because consultants work with it more and not confined to one business model.
5. Consultants can be hired for specialized projects that need certain expertise.
6. Partnerships and escalated support (Example: ICorps is Gold Partners with Microsoft and can get level 1 support during major down issues)
7. Managed Services (ICorps supplies managed care printers, firewalls, backup solutions) You pay a monthly fee for the device and they support it, manage it, replace it when it is out of date. This cuts costs on purchasing equipment in the long run.
8. Internal IT guy leaves the company, he can take a lot of info with him.
Weaknesses
1. Budget Costs. At a certain growth point it does make sense to hire full time IT (I have many that have both outsourced and onsite.)
2. People like having someone onsite that can immediately look at issues.
I have a ton of notes and I can follow up with Dave at any time regarding further questions. I am not sure what role this interview will play in our overall project, but I definitely think this perspective is very interesting. Just to maintain some consistency regarding the IT interview checklist, I ran through all these questions (see below) with Dave seeing that he is basically the IT manager for my company. Let me know what you guys think.
1. Governance
a. All IT functions are outsourced at Fortis. I am the liaison between Fortis and ICorps and am responsible for all communications / system maintenance that is completed by Dave Smith (outsourced IT manager).
b. N/A
c. Both equity partners at Fortis make the final decisions regarding all IT governance.
d. This system of IT governance works very well considering the size and capacity of my firm.
2. Budget Management
a. An IT budget is submitted by Dave to both equity partners for a basic year of service. This budget is then revised based on what other IT tasks are to be completed outside of the normal service. Any unique issues are dealt with accordingly and billed outside of the service contract (i.e. budget)
b. Certain IT items such as software expenses, basic network maintenance etc are allocated across the client base an included as an expense in their quarterly retainer fees. All IT expenses are charged as G&A internally
c. All IT related decisions are made by the equity partners in correlation with advice and guidance provided by Dave.
3. Outsourcing
a. All IT functions at Fortis our outsourced to ICorps Technologies, Inc.
b. Because all IT functions are outsourced all Fortis team members are able to focus their entire attention on their daily tasks. Costs are also kept much lower because a full-time employee is not utilized. Conversly the timing of visits can be problematic. If our IT consultant is dealign with an emergency at another client he certainly can't be in two places at once. Moreover, ICorps can raise billable rates to a certain level before we would consider taking our business elsewhere.
4. Implementation of Past Projects
a. Fortis Management Group, LLC was created in 2005. Accordingly, the only IT projects that have been addressed were setting up the network and allowing for remote access so employees can telecommute / work from the field.
b. Not Applicable
c. Not Applicable
5. Forecast of Future Projects
a. Fortis needs to make all historical tax files / permanent client files electronically accessible versus the current manual document set up. Additionally, the main facility will be relocated to another office park in Wellesley. An IT issues related to the move need to be addressed prior. Furthermore, Fortis needs to update all security systems to be in compliance with the new Mass Data Security Laws that take effect 1/1/2010.
b. Out of necessity.
6. Key Issues
a. Reaching compliance with the new Mass Data Security Laws that take effect on 1/1/2010.
b. Scanning and making electronic versions of all permanent client files / historical tax returns
c. Making a successful move to a new office
d. Increasing level of communication / flexibility between clients and staff within the field
e. Taking advantage of any new IT innovations to creating competitive advantages for Fortis.