Monday, May 7, 2012

Trends : Hands-off Outsourcing to Hands-on Outsourcing

Few years back companies in their earlier efforts to outsource with all its benefits of being able to focus on their core business most often outsourced services (IT services in general and specifically IT infrastructure services too) to a single vendor so that there was almost no IT staff required in their enterprise. The service providers brought in expertise --- operational and otherwise to work with business.

Over time several enterprises have evolved to realize that it may not just be a great idea to leave everything to a service provider (or even couple of them) and not gett their hands dirty. There are several challenges, many which come to fore over time due to need for continuity or improvements over a period which can best be championed and driven from within the enterprise to provide the best and most relevant content.

Many mid to large enterprises are now kind of going back to having IT staff, much leaner and with core responsibilities of making things happen working with service provider(s). This is bringing in a fresh change to business where IT department is able to step up and have more skin in the game and take responsibility not just for getting things done but also for doing the things that need to be get done.

This is possibly a natural evolution and comes as the proverbial middle path which offers best of both worlds --- there would increased IT staff wage bills but it comes with greater benefits of an improved business aligned IT services plan. Of course the thing many are struggling with is to get businesses to accept the improvement and provide inputs to put a tangible $$ value which can be used to further justify the change in approach by the CIO.

2 comments:

Unknown said...

Nice post. Very informative and helpful as well. Definitely, hands on to managing remote outsourcing staff will establish harmonious working relationship.

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Ashutosh said...

Thanks Enrique.
I see this as a natural evolution which enterprises "learn" mostly after realizing that, not doing it does not work, unless they are very mature in handling the relationship through their management system. However, even with that, the case for getting closer with a provider is very strong as it provides the necessary context to direct the service providers' focus