Availability: How much unplanned downtime will be eliminated? How much panned downtime will be reduced? And if an issue occurs, will the provider assume responsibility?
The business case for outsourcing should focus on how a service provider's highly trained resources, coupled with best practices, proper tools and back-office support, can outperform a team of full-time staff members.
The greatest cost of any IT investment is not the hardware, software or service contracts, but the staff expenses for resources needed to develop applications, manage and support these assets. In fact, more than 70 percent of total IT spending is spent on internal labor.
For outsourced services, the savings aren't always what they're chalked up to be. Managing an offshore contract, for example, increases the cost by six to ten percent, according to industry figures. Other extras include productivity lags, ramp up expenses, and "dead" money towards those laid off at home. Due to the piled up costs, many companies are bringing their operations back in house, to regain control of data and lower costs.
The bottom line: in the long run, properly deployed outsourced resources can make it easier for some companies to scale more effectively, set and predict costs, and allow the corporation to focus on its core business. But each organization must evaluate the costs and benefits of keeping services in-house, outsourced domestically, or outsourced offshore, to determine what gives the organization maximum value.
