Wednesday, November 28, 2007

IT Service management outsourcing

Today I was asked by a friend to recommend him a few companies that could offer support and assistance to them in order deploy new stuff from hardware servers (SUN and HP servers with Linux, Solaris10 and Windows) to software (CRM, VMware, Exchange, SQL, Banking Software, Oracle, SharePoint, …) and the phone system.

The IT service management outsourcing requires strong contract management and risk management and as I somehow had a feeling about their start-up financial institute and the regional IT habits, did come up with such response to him:

Due to the diversity in your required areas and systems, I believe achievement of a quality IT service management can not be done by full outsourcing.

I do know several companies that are focused on a certain products and do have competencies in those areas only and do not provide any other services. For example, a company focused on CRM (MS Dynamics) does provide only that product along with maybe sharepoint.

(Playing a role in all areas of today's IT industry will result into nothing but failure)

In terms of hardware, there are companies specializing in a set of products who do keep a stock in a warehouse and have proper delivery mechanisms. You procuring directly from distributors will reduce the hardware cost at least 20 - 30 % .

Hardware vendors such as SUN, HP or CISCO do provide technical support to their customers under variety of service levels.

My recommendation to you is to take care of your IT in-house and not outsource it. At the most you will need three or four resources that managing them will cost less rather than the risks involved with external companies where you don't have much control except a contract.

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