How far is too far when it comes to outsourcing IT?

Featured Article By Mike Decker, Director of Managed Services at Annese & Associates, Inc.

With more than 25 years of IT experience, perhaps I can shed some light on strategies for IT outsourcing, but first let me frame my point of view. With a BS in Telecommunications, I started my career inside a NOC located in the basement of a major bank in Buffalo, NY. And, not unlike many others in IT, I started at the bottom in an entry-level position and worked my way up, holding positions in management and leadership as well as a CIO role for several mid-size, large, and even international companies, spanning multiple verticals. Suffice it to say, I have seen a lot of technology come and go over the years.

During my career I have seen, and helped to create, many IT methodologies and industry best practices. At the end of the day, the “company” (not the partner or outsourcer) and their IT management must be ultimately responsible for the IT operational effectiveness and innovation of the organization. In addition, they must understand any and all regulations that are relevant for their business (i.e. HIPAA, PCI, etc.) and comply, design, and test accordingly. Security and regulation compliance must be in the forefront of all IT Managers’ priority list.

I have never witnessed (or worked in) a company that had enough staff, money, vision, support, and the wherewithal to internally balance all of this effectively. It’s always a balancing act of choosing what’s most important given the conditions, management, and business priorities.

Each company and IT department must be honest with themselves regarding IT success and what’s achievable with their staffing and budget. In today’s IT world, nearly every company outsources one or multiple functions. What gets outsourced depends on many factors and priorities.

At a high level, the most common or traditional functions to outsource are:

–          Network and technology design

–          New technology implementations and refresh projects/upgrades

–          IT project management

–          Support contracts and maintenance services

–          Network monitoring and remote support (RMM)

–          Data centers and cloud infrastructure

–          Security and business continuity planning and design

With the multitude of technology providers out there and new ones popping up every day, it is critical to have one or a very select few trusted IT advisors (partners). A true partnership and trusted advisor is typically built with a long-term relationship in mind and they grow with you to understand your business goals, IT goals, and strategic objectives today and in the future. Their job is to know you, and your company and bring new and relevant technologies to the table. The advisor you’re looking for works with customers to consult and present applicable technologies, provide design services, implement the systems, and offer continual monitoring and support of your investments. They focus your view and bring the most relevant solutions and services to you, their customer, and offer you the option of complete and total execution.

Selecting an IT partner can be a career make or break decision for IT Management. The IT Manager must critically evaluate partners and have the utmost confidence in their decision when a project implementation is on the line. This decision becomes even more critical when outsourcing. You will depend on this partner to provide a consistent, reliable, and high-quality solution at a competitive price. This decision is putting your reputation (and maybe career) on the line. I’ve been there; I know the pressure you face.

It is always a balancing act—selecting the right partner and the right solution. Selecting the right partner should enable to you offload tasks and responsibilities from your internal IT team, reprioritize their focus, and allow you to streamline your time to management of the team and achievement of your strategy.

Here’s an area where I think outsourcing can help: RMM – Remote Monitoring and Management. Most companies have some level of internal network monitoring and skills to troubleshoot and remediate. But, you need to ask yourself, is this the best use of your internal team’s time? There are companies that specialize in RMM, they are certified, trained, and available 24x7x365. The benefits for outsourcing this function are real:

–          No internal investment in monitoring hardware and software

–          More reliable monitoring and notification, regardless of your in-house infrastructure

–          Doesn’t burn your internal staff and you don’t need to staff 2^nd and 3^rd shifts for coverage

–          Get deeper and broader skillsets for troubleshooting and remediation

–          Fixed cost for operational management

–          Partner relationship, may offer other valuable services

Let’s be honest. The IT department in most organizations is a cost center as opposed to a profit center. Things like staffing, operational costs, and new products and initiatives are critically reviewed regularly by senior management for investments and cost-cutting opportunities. Making the right choices for partners and selective outsourcing is a necessary ingredient for a successful IT strategy.

About The Author:

As the director of managed services at Annese & Associates, Mike is responsible for the vision, planning, implementation, leadership, and day-to-day operation of managed services and related support functions at Annese & Associates, Inc. He has over 25 years of industry experience and resides in the Capital Region of New York State.