With the convergence of world economies, increasing competition and trans-nationalization of corporations, big, medium or small, the whole gamut of procurement, production, supply, sales and after-sales service has changed. The scenario has taken a complete reverse from an earlier stand of total ownership of all the processes to a new scenario of ‘outsourcing’, i.e. identifying and concentrating on one’s own core competencies while searching for partnerships, relationships & benchmarks, to outsource or contract the processes that other organizations or entities can perform in a better, cost-effective & efficient manner. Outsourcing IT application management allows an enterprise to focus on its core businesses with benefits across the business spectrum.
Top Five Strategic Reasons For Outsourcing:
• Improve Business Focus
Outsourcing allows companies to focus on broader business issues while having operational details assumed by an outside expert. For many companies, the single most compelling reason for outsourcing is that several of the how type issues are siphoning off huge amounts of resources and attention from management.
• Gain Access To World Class Capabilities
By the very nature of their specialization, outsourcing providers bring extensive world- class resources to meeting the needs of their customers. Partnering with an organization with world-class capabilities can offer access to new technology, tools and techniques that the organization may not currently possess; more structured methodologies, procedures and documentation; and a competitive advantage through expanded skills.
• One Time Applications
Applications that need to be developed or modified for a specified time require high manpower resources at one point of time. For this the organizations need to ramp up/ ramp down in a relatively short notice. This in-turn is expensive. For this outsourcing are the best solutions. For eg. Y2K, Euro, porting from one-platform to another etc.
• Reduce Or Control Operating Cost
The single most important tactical reason for outsourcing is to reduce or control operating costs. Access to an outside provider's lower cost structure is one of the most compelling short-term benefits of outsourcing. In a recent outsourcing Institute survey, companies reported that on average they saw a 9% reduction in costs through outsourcing.
• Secure Resources Not Available Internally
Companies outsource because they do not have access to the required resources within the organization. For example, if an organization is expanding its operations, especially into a new geography, outsourcing is a viable and important alternative to building the needed capability from the ground up.
Competent Systems provides a comprehensive IT outsourcing framework that ensures cost-effective and efficient management of customer IT operations. Customers strategically partner with CSI to manage and operate their applications and IT systems, generally under a mutually beneficial agreement. CSI provides service level assurances to ensure quality of service is attained and measured. Our services allow you to focus your human and capital assets on strategic business initiatives-and not technology issues-that bring direct value to your shareholders. We can help your organization not only save money but also improve operational efficiencies and enhance service levels.