Outsourcing can offer tantalizing benefits that at first glance appear to be cost-beneficial. Firms, however, must be able to discern between IT firms and outsourcing arrangements that can fulfill the implied promise of enhanced efficiencies and reduced costs. Whether the firm wants to supplant its entire in-house IT staff or augment its existing team with a partnership, Information Technology Strategic Planning applies an economic perspective that mitigates the risks inherent in the transfer of control. Too often has the “herd mentality” led IT firms to believe the optimal approach is simply to shift support to “farms” that offer the lowest cost per unit of time. Little consideration was given to “time to resolve” and the impact of perfunctory support on demand for the client’s goods and services-thus failing to capture the true cost of outsourcing. Most of us have experienced or least heard of these disastrous and pervasive arrangements, and firms are reticent to make this step as a result.

In an era of increasing business and technological complexity that demands specialization and scale economies it is becoming necessary to contemplate an outsourcing scheme. SMBs lack the resources and staff to thrive successfully in such an environment. It is not cost-effective for even large firms to have resident staff able to deal with these growing complexities. Even if a competent ITSP firm is procured to manage the outsourcing arrangement this may merely shift the saved expenses to the procurement effort and setup costs. This is an arduous task for firms already stretched thin by the current obligations of their business.

Netwatch provides a wide breadth of services that can mitigate the risk of migrating to an outsourcing arrangement. Read More...