Should you outsource your Information Technology?
Which IT operations can you outsource?
Any of the following, provided they are not your core operations:
- Website Design, Development, Hosting and Maintenance.
- Database Development and Maintenance.
- Network Setup & Maintenance.
- Corporate Security and Firewalls.
- Computer Programming, Software Development.
Benefits of Outsourcing IT:
Core Competency: Your staff can concentrate on core operations.
Efficiency: The operation can be done more efficiently by a specialist.
Liability: The outsourced vendor can be held accountable for the operation.
Cost: An outside company may be able to perform the operation cheaper than you can.
Drawbacks of Outsourcing IT:
Fear of Job Loss: Individuals in your company may fear losing their job.
Security: The possibility that your critical data may be lost or stolen from the vendor.
Quality of Service: Will the vendor provide the same quality that you would?
Negotiating Outsourcing Agreements:
Use an attorney familiar with Outsourcing.
Retain the Intellectual Property rights to any development work done for you.
Spell out your company's standards, expected deliverables, and timelines.
Specify remedies in the case that you are not satisfied with the product or service delivered.
Have an exit clause - You must have a way of ending the contract on your own terms.
How do you find reliable Outsourcing Vendors?
Get referrals from your Chamber of Commerce.
Build up a database of vendors you meet at business get-togethers.
Request references for vendors from people you know and trust.
Interview the vendors yourself. Ensure their competence.
“Google” the vendor. Check bbb.com.
