We know that cloud technologies are here to stay. CIOs need to embrace cloud as part of their long term strategy. Organizations are outsourcing more and more of the management of their IT infrastructure. I came across this quote the other day:
“Scalable solutions have reduced IT costs and channelled investment in innovation and digital change.” –in CIO Leadership, Digital Change and IT Supplier Management.
As the C-suite team zooms in on strategies designed to boost innovation in order to please stakeholders and stay competitive, CIOs charged with managing the company’s IT seesaw between in-house and outsourcing for IT projects. With all the possibilities now out there, CIOs may even seesaw about HOW to outsource, if a decision to do so is made.
It used to be the case that the ROI favored keeping all the IT work in house. No more. The cloud—along with the many IT start-ups that use cloud technology—have radically reduced IT-related costs.
Between large, established IT companies and small, newer, entrepreneurial IT start-ups, CIOs may find it hard to determine which way to turn. The following pointers on outsourcing their IT project services, therefore, may be helpful.
Review current resourcing of IT projects
Every company department relies on IT to maintain its services, and every innovation will require IT input and development. It is therefore essential that there are sufficient resources and timeframes for IT projects to succeed—for both departmental maintenance and corporate innovation.
The first step is for the CIO, then, is a quick review of how well IT projects typically are resourced in the company. Our blog on identifying signs of IT department overload is a good starting point.
Adequate human resources counts as well. So the next step is looking at whether the talent is already on board—at both the Project Management and team member levels—with all of the skills, creativity, and flexibility needed to address the innovation and maintenance equation. That being unlikely, especially over the long run, then you need to decide what to outsource, and to whom.
This blog, 5 Tips for Effective Outsourcing, includes pointers on deciding what to outsource. Essentially, if your company’s mission does not include producing IT products, why service them in house? Not a high tech company? Turn to an outside source for any product or service not integral to your mission.
The whitepaper mentioned above outlines specific reasons to turn to outsourcing as a means to boost your company’s ability to innovate. So-called “niche suppliers” are now out there with the both the talent pool and the all-important agility to not only handle the IT aspect of your innovation ideas—they can even contribute in a way that enhances your innovation.
Red Hat, the enterprise OS software company, recently underwent a successful outsourcing process and ended up hiring Catalyst IT Services to enhance its customer service. You can read about this outsourcing process here.
The new outsourcing management
Managing an outsourced supplier is not easy, and may require that you disrupt your current view of supply side management.
Getting the most out of your new IT supplier often means looking at that niche supplier as a genuine partner—because they are. Maintaining an open communication about ideas—yours and theirs—is likely to lead to a better outcome for your innovations.
Having cultivated a relationship with a niche supplier in the long run can translate into a true partnership with win-win ROIs for both companies.
The CIO’s role, never an easy one, is now more challenging than ever. One clear path to enhancing ROI, however, lies in the CIO’s ability to analyze the daily vs. strategic long-term IT needs of the company and act accordingly.
The lower cost of outsourcing these days provides CIOs with the flexibility needed to manage IT projects successfully—if they know how to take advantage of the new market of niche suppliers.
At Daysha, we’re here to help. Please contact us with all your IT Project Management needs.
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