There comes a time when every business needs to consider the benefits of outsourcing. As stated in a report by Corporate Computer Services, outsourcing your IT operations has many benefits, including integrating the latest technology and reducing overall costs for your business.

The same report also outlined the risks, but they pale in comparison to the rewards that could be realized.

Forbes Technology Council members weigh in on when it’s a good time to outsource your IT operations.

Your business will thrive when you understand its economics

The decision to outsource IT goes well beyond the cost of doing so versus the costs of keeping it in-house. To make the right decision you have to understand what your business does and why. Investing in internal IT costs more than the organization can afford. You should consider outsourcing your IT operations unless you are Amazon, Dropbox, Google, or another company that generates value from its IT operations.

There is never a better time to start than now

Hosting everything in the cloud is never too early. I have outsourced things like NOC to third parties as soon as the budget became available over the past few years. In the Boston area, one can get 24/7 monitoring of my production websites for about $4,000 a month, plus other useful consulting help.

Virtualization and footprint play a role

It’s often referred to as “outsourcing” because Amazon Web Services manages networking, power, physical servers, base operating system images, and more. For others, outsourcing can mean paying for hosted versions of all kinds of business applications, such as Microsoft, Salesforce, and others. Outsourcing is a risk that no technology company wants to take on.

When it enhances your business while causing minimal disruption

Make your decision based on what will enhance your business with the least disruption. In older/larger companies, this may mean moving tech solutions to the cloud so they can stay current on the latest upgrades and infrastructure without having to manage it themselves. If your company is smaller, you might be able to hire IT personnel on a contract basis to get the intermittent support you need.

It doesn’t matter when it is

Outsourcing arrangements work well for startups and established businesses alike. The advantages of outsourcing include cost reductions in terms of operations, greater talent, and the ability to scale up and down as needed, depending on the needs of additional workers. The benefits of outsourcing your IT operations to a NOC are numerous.

Whenever You Don’t Have a Core Competency

Your core competency should never be outsourced. On the other hand, you should always consider outsourcing what is not core to your business. Outsourcing to an organization that supports their industry can often greatly improve the IT service for small businesses. Small businesses are freed up to work on their businesses instead of on IT.

Your Product Development Time Is Freed Up

Your best IT people might not be working on high-impact projects as much as they could be, in which case outsourcing IT operations could free them up to work on more crucial initiatives. As an example, outsourcing your phone system and servers might enable your best developer to focus on the R&D of your core product, which in the long run will be more valuable to your company.

When You Have Streamlined Your Processes

When you have streamlined your processes within the department, it is appropriate to scale or outsource your IT operations. The ability to utilize a third-party resource is heavily dependent on how well the process is being executed and documented internally, at which point you can look to reduce costs/scale at large.

It Is Not A Differentiator When The IT Operation Isn’t

Outsourcing makes sense when the task or program no longer differentiates your company. Most of IT today can be outsourced; it is really up to you as the IT leader to determine what is adding value to your organization. If you cannot differentiate yourself from your customer with a piece of code, email platform, or infrastructure, outsource it.

Screening Programs You Can Trust

Unless you have an ironclad, trusted screening program in place to vet those who have direct and indirect contact with your technology, outsourcing IT is not an option. Your IT department is responsible for maintaining the safety of your company’s data in the face of constant attacks. Don’t consider outsourcing IT until all aspects of the vetting process have been covered, including credential checking and identity verification.

If You Want Your Business To Scale

When you want to take advantage of the expertise of a firm and scale your business, outsourcing is a great strategy. You can take advantage of a cheaper, more efficient service instead of wasting time and money on experimenting. In addition, outsourcing may make sense when you’re considering expansion and your IT operations can’t keep up.

Choosing a Project-Based, Specialized Skill

When you need specialized skills for a short period, outsourcing makes sense. You might need a computer vision engineer for one project that takes six months, but you won’t need the skill again shortly. If this is the case, outsourcing is a good option.

When IT becomes overburdened

With increasing system complexity and a shortage of IT professionals, many organizations are considering not only IT outsourcing but other solutions that can reduce the heavy IT load, such as automation and cloud migration. Companies are looking for ways to improve their productivity and efficiency to remain competitive.

What You Want When You Know It

The business must define what it needs to accomplish regardless of the level of responsibility it outsources. Failure to provide appropriate direction is one of the most common reasons for outsourcing to fail. Roles that involve business strategy or a business-level leadership component should not be outsourced due to concerns with conflict of interest and contextual experience.

SECURITY FOR YOUR IOT Ecosystem: The consequences of failing to secure the IoT ecosystem can be dire

Businesses are finding numerous applications for the Internet of Things (IoT), which is growing in complexity and capability. IoT applications can be observed in refineries, oil rigs, power plants, power grids, manufacturing, safety monitoring and prevention systems, and even in automobiles. Managing such business operations with an insecure IoT network may put them at risk of the highest degree. There have been alarming cases of IoT security breaches with potentially deadly consequences, the most significant being the cyberattack on a Saudi Arabian petroleum plant, which caused an explosion. IoT assumes increasingly important roles in areas that directly affect human life and safety, and a security failure could have devastating consequences.

IoT plays an increasingly important role in controlling critical business operations, raising the value of the things at stake. Therefore, organizations should first focus on securing IoT before planning a large-scale implementation. When seeking benefits without considering the risks involved, it can prove counterproductive, and even catastrophic, which can be avoided through patience and preparation. Rather than rushing into full-scale implementation, leaders should first address the vulnerabilities in an IoT ecosystem. The leaders and organizations will be better prepared for an IoT-enabled future that is more sustainable and successful.

By Ahmed

 

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