IT outsourcing: Focus on your core business
Digitalization is forcing small and medium-sized companies (SMEs) to fundamentally rethink their IT strategies. Given the need to remain agile and scalable, more and more SMBs are considering outsourcing their IT infrastructure. This step not only enables cost savings and access to the latest technologies, but also allows to focus more on the core business. But how does the transition from an internally managed to an outsourced IT service structure work? Our blog post navigates you through the decision-making, planning and implementation of IT outsourcing.
Author
Paulo Charrua brings over three decades of experience in the IT industry and heads the Managed Solutions department at redIT. He supports SMEs in particular in digitizing and optimizing their IT strategies. redIT distinguishes itself as a leading IT company, specializing in tailor-made digitalization and cloud solutions that increase efficiency and effectiveness in companies. The company stands for individual services and close customer relationships.
Efficient solution for resource scarcity – why IT outsourcing makes sense
IT is at the heart of every modern company and plays a crucial role in how it functions, regardless of its size. The constant innovations in the IT industry lead to constant change and present companies with new challenges. Managing IT infrastructure requires expertise, time and other resources, which can be particularly difficult for small and medium-sized businesses (SMEs). Large companies can often maintain their own IT departments, while SMEs struggle with limited resources. SMEs have to use existing resources efficiently and therefore usually only want to focus on their core business. However, since IT cannot be neglected, outsourcing IT is a sensible solution. By working with an external IT partner, SMEs can draw on existing expertise and experience to meet their IT needs without the cost and burden of their own, in-house IT department. Outsourcing allows SMEs to focus on their business priorities while ensuring the reliability and efficiency of their IT systems.
How does an SME evaluate which areas of IT should be outsourced?
The decision to outsource begins with a comprehensive analysis of the existing IT landscape. SMEs need to assess which IT components such as clients, servers, networks, security systems and application software are essential to daily business and should be managed internally. At the same time, it is important to identify which areas can be serviced more efficiently and cost-effectively by external service providers. A thorough inventory and risk assessment are essential for this.
Influence of hybrid working models on IT-as-a-Service decisions
The COVID-19 pandemic has permanently changed the world of work. Many companies have found that hybrid work models that allow for a combination of office work and remote work are not only feasible but also beneficial. However, these models require a flexible and reliable IT infrastructure that ensures that employees can be productive from anywhere. This has a direct impact on IT-as-a-Service decisions, as such services are often better suited to providing the flexibility and scalability needed.
A hybrid working model combines the advantages of remote and face-to-face work. It allows employees to flexibly switch between working from home and working in the office. This flexibility not only increases employee satisfaction and productivity, but also helps optimize operational processes.
When it comes to IT infrastructure, hybrid working models present important challenges and opportunities. First, companies need to ensure that their systems and platforms are seamlessly accessible between different locations and devices. This requires a stable and scalable IT infrastructure that can meet the needs of remote employees as well as those in the office.
Overall, hybrid working models offer a variety of benefits for companies, including an improved work-life balance for employees, greater flexibility and adaptability, and cost savings through reduced office space and equipment. By promoting IT outsourcing, companies can also benefit from external expertise and resources to effectively adapt and optimize their IT infrastructure to the requirements of the hybrid working model.
Gradual outsourcing of internal IT
The transformation to ITaaS should take place in carefully considered steps:
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- Strategy and planning: Determine outsourcing goals and develop a detailed plan.
- provider selection: Selection of the IT service provider based on their competence, experience and offering.
- Contracts: Definition of service level agreements (SLAs) and data protection regulations.
- Transition phase: Planning and implementation of the handover of IT services.
- Implementation: Implement outsourcing gradually, starting with the less critical services.
- Training and support: Training employees in the new IT environment.
- Parallel operation: Testing the new services parallel to the existing system.
- Complete changeover: Switching off the old systems as soon as the new ones are working reliably.
- Continuous assessment: Regular review and adjustment of the services.
- scaling: Adapting services to business growth and new requirements.
Gradual outsourcing of internal IT
The transformation to ITaaS should take place in carefully considered steps:
-
- Strategy and planning: Determine outsourcing goals and develop a detailed plan.
- provider selection: Selection of the IT service provider based on their competence, experience and offering.
- Contracts: Definition of service level agreements (SLAs) and data protection regulations.
- Transition phase: Planning and implementation of the handover of IT services.
- Implementation: Implement outsourcing gradually, starting with the less critical services.
- Training and support: Training employees in the new IT environment.
- Parallel operation: Testing the new services parallel to the existing system.
- Complete changeover: Switching off the old systems as soon as the new ones are working reliably.
- Continuous assessment: Regular review and adjustment of the services.
- scaling: Adapting services to business growth and new requirements.
The right approach in the transition phase
At the latest during implementation, the question arises as to how the switch to outsourced IT is carried out:
– Should all systems be outsourced at once or does a step-by-step approach make more sense?
– Is it advisable to set up a transition period with dual operation in case problems arise, or is a switch at a fixed time a better option?
In the best case, these questions are clarified by the IT partner during the planning phase and decided based on the requirements. The correct approach in the transition phase of IT outsourcing requires thorough preparation and resource planning.
Outsourcing all IT systems at once offers the advantage that the transition process can be completed uniformly and all employees work on the new IT infrastructure at the same time, which makes internal coordination easier. Immediate implementation also brings efficiency and cost advantages through faster implementation and a shorter transition phase.
However, the transition to outsourcing IT can also take place in stages. This allows companies to gradually adapt to the new processes and systems and minimize potential risks. By taking a step-by-step approach, companies can react more flexibly to unforeseen difficulties and handle the transition process in a more controlled manner.
The choice between phased or full outsourcing depends on the company's specific circumstances and goals. However, the integration of employees and correct training on the new systems are crucial aspects for both options in order to carry out successful outsourcing.
Important tips for successful IT outsourcing
Selection of the IT service provider
Selecting the right IT service partner is a critical step. SMEs should carefully evaluate potential service providers by checking their experience, expertise and references. Also important are the flexibility and scalability of the services offered as well as the ability of the service provider to meet individual requirements. Transparent dialogue and clear communication are essential here.
Contract design and SLAs
A well-structured contract with clear service level agreements (SLAs) is the backbone of a successful outsourcing partnership. These agreements should include performance indicators, uptime guarantees, request response times, and escalation procedures. It is important that SLAs are realistic and both parties agree on the consequences of non-compliance. Data protection and security aspects also need to be regulated in detail, especially in industries with strict regulatory requirements.
Employee training and change management
The successful introduction of an IT service model requires not only technical but also organizational changes. Employees must be prepared for the new systems and processes. Training and ongoing support are crucial to reducing resistance and promoting acceptance. Effective change management takes into account the human side of the transition and helps to prepare employees for the coming changes and to support them in doing so
The IT is outsourced to a service model: What then needs to be taken into account
After outsourcing IT to a service model, close collaboration with the IT partner is essential. It is important to regularly review the requirements and adapt the systems accordingly to ensure that the IT services meet current needs. In addition, you should always monitor current trends and new technologies in collaboration with your IT partner and update your systems accordingly. This not only ensures efficient business transactions, but also contributes to the security and competitiveness of your company.
Advantages of IT outsourcing
Time, resources and financial savings
IT outsourcing allows companies to save time, resources and costs normally required to build and manage their own IT infrastructures. Due to outsourcing, topics such as IT security, product selection and technical aids fall into the area of responsibility of external IT specialists. Through this collaboration, they can do without their own specialist staff and use the resources in other areas.
Cost and performance transparency
Clear agreements and contracts improve cost and performance transparency. Projects can be analyzed precisely and evaluated in terms of key figures. IT services are logged and the costs are therefore traceable for you at any time.
Expertise of IT specialists
IT outsourcing allows you to access the expertise and experience of IT specialists. This helps solve problems more quickly, drive innovation and increase the efficiency of IT systems.
Competitive advantage through continuous development
By working closely with the IT service provider, companies can gain a competitive edge by benefiting from the latest technologies, trends and best practices. The IT partner can suggest ongoing developments and optimizations that are precisely tailored to the needs and goals of your company.
Data storage and security
A reliable IT service provider can ensure secure and reliable data storage by implementing modern security measures and technologies. Most IT partners in Switzerland rely on data storage in Switzerland. By outsourcing data storage and security to an experienced partner, companies can minimize risk while ensuring their data integrity and availability.
Disadvantages of IT outsourcing
Dependence
IT outsourcing leads to a dependency on the chosen external service provider. Because important business processes and data are in the hands of a third-party provider, the company may be vulnerable to interruptions or problems beyond its control. It is important to work closely with your trusted IT partner.
Privacy
Outsourcing IT services can entail data protection risks, especially if sensitive company data is passed on to external providers. Even when confidentiality agreements and security measures are in place, there is always the possibility of data breaches or unauthorized access to data by the service provider or third parties.
Conclusion on IT outsourcing for SMEs
Outsourcing IT infrastructure offers SMBs the opportunity to focus on their core business while gaining access to expertise, advanced technologies and cost efficiency. Careful planning, selecting the right partner and defining clear service level agreements are crucial to the success of outsourcing. By taking into account the special needs of SMEs and adapting services to hybrid working models, companies can increase their productivity and competitiveness.
Final considerations
Deciding to outsource IT services is a significant step for any SME. It requires careful planning, clear communication and choosing the right partner. By following the principles and best practices outlined here, SMEs can take full advantage of the benefits of IT outsourcing, increase their efficiency and focus on their core business. Ultimately, the goal is to build a long-term partnership that supports the company and contributes to its success. We advise you transparently and are available to you with our 360° expertise. Future-oriented solutions and collaboration are our top priority for long-term partnerships. True to the motto; competent, pragmatic and individual! Get in touch with us today for professional IT advice on IT outsourcing.
This blog was published as an article in Swiss IT Magazine published.