Outsourcing Of IT Functions And How To Manage Them

Outsourcing can be defined as the process of delegating or sub-contracting certain peripheral organizational activities to third party service providers so that the management can better focus on its core business functions. Today, a very large number of organizations outsource many different functions to external parties and as a result a whole new third-party service provider industry has sprung up to make the lives of managers easier than ever. Among the many functions that are outsourced, IT is one of the most common functions and it eliminates the need for organizations to recruit and compensate qualified IT professionals in-house. However, there are some potential risks of such contracts and this article discuses about three tips on how a manager can effectively manage their relations with third parties to achieve organizational success. Go here https://www.citysystems.net.au/  for more information about IT support companies. 

Ensure you gain the services of individuals with the right skill set

The main purpose of outsourcing being the reduction of overall cost to the business, it is only logical to select the party that delivers the service at the lowest cost. For this the managed IT services Sydney provider must compensate their employees at a level lower than that of the organization. However, this shouldn’t be the result of the involvement of a poorly skilled set of third party employees who will eventually deliver services that are of lower standards which will tarnish the reputation of your organization and drive the customers away. By properly evaluating the recruitment methods used by the third party such surprises can be avoided.

Only outsource the functions for which you don’t possess inhouse expertise

There are instances where managers chose to delegate certain functions for which specific departments have been established in the organization, so that they are able to cut down on the staffing requirements which saves a lot of money. This isn’t always a healthy approach because it will render the costs that the company initially incurred in forming the department and recruiting personnel worthless. Therefore, managed service providers must be sought for functions that require certain expertise that does not currently exist in the entity.

Effectively monitor the outsourced processes

After selecting the most appropriate functions to be outsourced and the most suited third parties to whom they can be delegated, an organization cannot simply sit back, relax and expect their costs to reduce over time. To efficaciously reap the benefits of the contracted process, an organization must possess the right managers who are capable of monitoring both the internal as well the external party’s performance. By placing the customer’s requirements at the highest priority level, a proficient manager will guide and direct both the organization and the external parties towards collective success. An organization must therefore hire talented and well qualified applicants who are specialized in the field of BPO (business process outsourcing).