Page 72 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Planning and Managing IT Infrastructure

Notes
Example: Logistics service providers have developed a wide array of services that enable
their clients to improve operating efficiency and effectiveness, reduce inventory, and increase
customer service by reducing delivery times and providing delivery status at any point in the
pipeline. The providers usually can deliver all these services at a lower cost. As a result, many
organisations have outsourced their logistics operations to third-party logistics providers to
manage complex global supply chains.
Other reasons for outsourcing are:
 Experienced team: When you outsource a work you by default get access to an experienced
team which can tailor to your needs. You do not need to allocate resources to hire fresh
talent and bring them to the speed. This reduces the overall project time, HR work, Office
space which can be used for the growth of the business.
 Technological expertise: Outsourcing companies are up to date with all the latest
technologies. The likelihood of having a successful project is increased when you are able
to rely on an experienced team of professionals who use the technology you require as
part of their everyday business. In this way, they make sure to provide the most advanced
and most recent solution to customer needs. This is not limited to the customers only; they
provide all the latest Infrastructure technology at their office and to their employees too.

 Business Growth: By outsourcing you can get relaxed from the tension of your IT needs
and focus on the core business. IT is always the backbone of any institution but it is critical
that you spent as minimum time on IT because it is not revenue generating rather it is
expenditure! Hence, by outsourcing you can schedule your resources in more efficient
way to current, critical, or ongoing projects. Finding time for a new project can be difficult
when current in-house resources are being utilised to their maximum capabilities.

 Timely completion: By outsourcing you ensure a timely completion of the project. Since
outsourcing is a contract based business DEADLINE is a vital element of it. Any project
outsourced is under a contract which ensures that the offshore company meets the project
deadline on time. Also, by outsourcing you have a dedicated team of professionals working
for you rather than allocating more work to your existing resources.

 Long-term Relation: By outsourcing you can end up in a long term relationship with the
company and can completely rely on your IT needs on them. Since, High technical staff
turnover is a major concern of many organisations you do not need to worry about that.
When a project is outsourced, the risk of losing knowledge and expertise is significantly
reduced. The consulting company as a whole is responsible for completing the project.

Self Assessment

Fill in the blanks:
7. An .............................. can perform a business process better than its clients ever could.
8. By outsourcing you can end up in a .............................. relationship with the company and
can completely rely on your IT needs on them.
9. A .............................. is any organisation that provides goods, facilities or services to the
public, whether paid for or free, no matter how large or small the organisation is.
4.4 Issues Associated with Outsourcing

While companies can gain many potential benefits from outsourcing, these gains do not come
without potential problems. Four areas of risk include quality problems, exposure to legal

66 LOVELY PROFESSIONAL UNIVERSITY