Summary
Outsourcing for IT services is not relegated to only small businesses. Most enterprise companies currently outsource their IT talent. Professional IT technicians are difficult to find and even harder to keep. Many companies find hiring an external IT service provider is more cost-effective and gets the best experts to meet technical requirements. With so much demand for skilled IT service technicians, how should a business find the right outsourcing partner? What are the best practices for outsourcing IT services?
Date: June 6, 2023
Author: Barry Preusz
The Case for External IT Support
Outsourcing IT services is a strategic move for businesses looking to reduce costs, access specialized expertise, and focus on core competencies. Subcontracted IT services are not a small company phenomenon due to a lack of staffing or expertise within the business. Outsourced IT services play a significant role even among the largest companies. In fact, 92% of the Forbes Global 2000 companies use IT outsourcing.1 So when companies look outside their business for specialized services, what is the best process to employ? This article examines the steps to follow when searching for an outsourced IT company.
Best Practices for Hiring the Right IT Company – Step-by-Step
First, define company goals.
Before outsourcing IT services, define the objectives needed. For example, do you need network security, anti-virus management, server support, network administration, desktop care, data cabling, or server migration? Then, identify the specific knowledge and competencies you have in-house and what is lacking within that you can derive from an external source. Also, determine the information and communication outcomes you expect and the timeline for completion.
Second, identify the right outsourcing partner.
Look for an outsourcing provider with expertise in the services you need. Consider the prospective partner’s experience, reputation, track record, proximity, pricing, and cultural fit. Will working with this partner create a synergy between the two companies to meet your needs and promote your business? A study by Elfring and Baven found that outsourcing technical services can reach an autonomous status in which the eternal partner can do more for the company than they could do on their own. This new autonomy allows the company to close or redelegate some in-house functions and reroute them to the outsourced company for improved performance and cost savings. 2
Next, develop a detailed service-level agreement (SLA).
A comprehensive SLA ensures both parties understand their roles and responsibilities and manage expectations. The SLA should provide details such as scope, timelines, service levels, escalation procedures, confidentiality, and security measures.
Establish communication protocols.
Clear communication is essential for a successful outsourcing relationship. Therefore, establish communication protocols such as regular meetings, reporting requirements, and issue escalation procedures.
Manage the relationship.
After establishing the outsourcing relationship, it is crucial to manage it effectively. For example, monitor performance against the SLA, address any issues promptly, and maintain open communication channels. Along with the communication protocols above, working through the inevitable challenges cohesively is part of the process.
Finally, evaluate the results and adapt.
Regularly evaluate the outsourcing relationship to ensure it meets the company’s goals and objectives. Employing metrics such as cost savings, service quality, communications interruptions, information security, document flows, and customer satisfaction can allow you to measure the success of the outsourcing arrangement. Often some plans will change as more information about your evolving IT system comes to light. Be flexible and adapt to the changing situation, always moving forward to improve the information process.
Summary
The steps above lead business executives and owners to successfully outsource IT services that are extremely difficult to manage on their own. Subcontracted IT services can help businesses realize cost savings, specialized expertise, streamlined operations, and, most importantly, allowing your company an increased focus on your core competencies.
Footnotes
- 1Howarth, Josh. 47 New Outsourcing Statistics (2023-2026). Exploding Topics. May 8, 2023, Webpage. Accessed 16 Jan. 2023. explodingtopics.com/blog/outsourcing-stats
- 2 Elfring, Tom, and Geert Baven.
Outsourcing technical services: stages of development.
Long Range Planning 27.5 (1994): 42-51. Accessed 16 Jan. 2023. www.sciencedirect.com/science/article/abs/pii/0024630194902267
