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Determining The ROI Value of IT Project Outsourcing

By John Rains
Jun 18, 2009
IT project outsourcing is not about managed hosting or simple application development. Any company can set up shop and do that. This is about protecting your business assets.

Determining the value of that depends on how much your customers data is worth and if being up 100% of the time is mission critical.

As a CIO, CTO or senior technician, sometimes finding the answers to the value offered by outsourcing is elusive. We explain several of the most important components to keep in mind when outsourcing a specific project.

* It Is About Creating More Revenue

This is not about eliminating jobs. Most companies think of outsourcing as a bad word. But you are in business to make money. And to do that, you need growth. The type of IT project outsourcing to consider are those components that free up staff to focus on growth. Not put out fires.

* Increased Performance, Lower Costs, Enhanced Quality

Most IT staffers are hired to develop products or services, not baby-sit. By outsourcing the management of your mission critical systems to someone else, these resources can be redeployed to product development and enhancement.

The outsourcing group is now responsible for keeping the back end in top performance. Any fires that get started are their responsibility.

* Strategic Outsourcing

Look for more than data center outsourcing. And don't go for the low ball bid. The IT provider you choose is there to help you grow your business. So don't hamstring them by trying to cut corners.

If they are a solid, experienced company, their service offering is going to be very clear on the benefits to you.

* Following ITIL Best Practices

Any IT project outsourcing agent you go with should be an active ITIL practitioner. The service management model followed is the best in the industry.

If you find a company whose plan is to adopt ITIL as a holistic approach to servicing your business, start with them. They have spent the time learning the processes that keep your business functioning like a top performing IT shop.

An outsourcing provider delivers guidance and support in the management of your IT infrastructure. It is not about knowing the details of your business. That is your responsibility.

However, using an ITIL based approach helps them streamline your current IT services with a realistic expectation and measurable results.

The value in IT project outsourcing begins and ends with ROI.

After you get through working with a solid, credible company your ROI should be obvious. Typical results are seen with freed up staff, unnecessary data center construction and building processes. All of which amount to substantial savings.
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