Information Technology Outsourcing IT Innovation. Business Value. Infrastructure and Application Outsourcing: The Reasons, Risks and Rewards As new business models are embedding IT more deeply into the business, today s Chief Information Officer plays an increasingly critical role in aligning a company s short-term and long-term IT strategies and investments with vital business objectives. Their choices today will drive future growth, accelerate enterprise performance and transform how people work. CIOs are accountable for running incident-free daily IT operations that meet business needs across the entire organization, including divisions, business units, suppliers and even customers. They are simultaneously challenged to develop effective and innovative IT capabilities, based on opportunities presented by market and technology advances, and to manage within budgetary limitations. Whether they decide to insource, or join an increasing number of businesses that are outsourcing IT services and infrastructures, executives need to balance business objectives with cost efficiency, IT optimization, speed, security and compliance. Secure-24 is a leading provider of managed IT operations, hosting and cloud services, providing highly available IT environments and expert management and support for your business. 2 Northwestern Highway, Southfield, MI 48033 Phone: 800-332-0076 info@secure-24.com www.secure-24.com
The Outsourcing Decision Soaring capital expenditures, budget constraints, and the growing pace of technology change can make maintaining and expanding on-premise IT services less attractive. With these and other challenges, IT infrastructure and application outsourcing becomes an alternative that more and more organizations are choosing. Many of these businesses have determined that a third-party outsourcing provider can help run their IT operations cost-effectively, with improved capital management and increased IT flexibility. IT outsourcing partners also give businesses added flexibility in cost, time and resources. These IT decision-makers utilize outsourcing partners that they can trust to stay focused on their core business and to help accelerate innovation and create value. SeleCTIve OuTSOurCINg Drivers AND TyPICAl ResulTS High PrIOrity of Driver Eliminate Headaches Convert Fixed Cost to Variable Cost Improve Service Improve Focus of Business Restructure Company Avoid Investment Free Up Resources Share Risk Access New Skills Meet Business Timetables Low Low-Mixed Results Relative Level of SucceSS Consistently High p a g e 2 o f 6
Key Drivers for ITO Every organization has a different set of requirements and expectations when outsourcing all or parts of their IT/IS infrastructure and functions. Some CIOs take a tactical approach of strategic application and infrastructure outsourcing to achieve more effective global operations or speed time to market. Others decide on a complete ITO option as an opportunity to transform and reengineer their technology and processes for greater effectiveness and agility. Key Drivers FOr ITO CheCKlIST Cost Management Gain economies of scale Increase productivity Avoid capital investment Predictable cost structure Variable cost models Cost Management Strategic outsourcing can deliver savings and a reduced total cost of ownership (TCO) for the organization in a number of ways. Capital expenditures can be reduced and costs can be lowered. Outsourcing providers make capital investments in hardware and equipment and share those cost across multiple customers. This translates into a lower cost based on significant economies of scale and allows their clients to reallocate those dollars to core business needs. Outsourcing allows the costs associated with IT to shift from the capital expenditure (capex) budget to the operational expense (opex) budget, financially positioning IT as an essential cost of doing business alongside other core costs of sales. Outsourced partners offer a way to reduce daily operational costs. The best providers allow companies to scale IT operations, so they can control how much is spent in high or low times. Businesses can pay as they go with outsourcing providers. Such flexibility allows companies to move from fixed to variable costs. p a g e 3 o f 6
Driving High Performance While cutting costs is usually near the top of every ITO wish list, there are a myriad of other benefits to be gained by partnering with an outsourcing provider. Flexibility to Focus: Outsourcing providers can manage the day-to-day IT tasks, and free up corporate IT professionals who need to focus on higher value responsibilities. The ultimate benefit for many CIOs is the ability to focus their own internal IT resources on key strategic initiatives that positively impact the future of the business. Key Drivers FOr ITO CheCKlIST Stabilization & Performance Improve business focus Adopt best practices Manage complexity and stabilize environment Transform and re-engineer Leverage technology advances more quickly Enhanced services and better systems Improve scalability and business agility Strengthen control and compliance Agility to Compete: Companies often need speed to market and the ability to respond quickly to opportunities. Outsourcing providers offer fast provisioning and IT support and agility to implement or upgrade applications quickly and securely, or to launch a product, especially when a separation is required between internal and external IT functions. Scale Cost and Capabilities: The peaks and valleys of business activity can add some uncertainty and inconsistency to operations. Outsourcing providers can reduce risk by offering scalable resources and reliable performance for business continuity. Adapt and Protect: Businesses adapting to the changing global business environment often have need for time-sensitive IT separation, integration, consolidation and transformation. A reliable outsourcing provider will know how to handle the IT challenges during mergers, acquisitions, and divestitures to maximize value and minimize risk. Future Proof: Outsourcing can be used for quality improvement because providers offer best-of-breed processes, people and technology. Accountability: A business can leverage provider Service Level Agreements (SLA) to ensure that IT infrastructure and application availability, performance, and support sync with business objectives. p a g e 4 o f 6
Access to Skills & Technology Access to the technology and skills needed to support business objectives is often a critical factor in the decision to outsource. CIOs can tap the IT expertise and knowledge of their outsourcing partners. Providers have senior enterprise and solution architects, as well as senior project and technical experts who can help design solutions and guide IT projects and operations. They also can solve technical and end-user issues through 24-7 help desk and support. Key Drivers FOr ITO CheCKlIST Access to Technology & Resources Access to specialized skills Facilitate technology change Management expertise Attrition management Reduce risk Instead of struggling to find, train and retain specialized IT talent, businesses can tap a broad pool of highly skilled IT specialists who can allocate their knowledge and skills to support the businesses, as needed. Outsourcing providers will assign well-qualified individuals to manage client accounts with a single point of contact and multiple service teams made up of highly skilled technical individuals. Outsourcing providers come with investments already in place. The best providers already have the latest technologies, processes and tools. Their clients benefit from a continuous investment and improvement model and focus on innovation. IT outsourcing can lay a foundation to help organizations move away from complex and inefficient IT environments and create IT capabilities that are scalable, agile, secure and responsive to business needs. Choosing a Strategic Partner The best outsourcing providers act like partners who consider their client s business to be important to their business. They schedule frequent meetings to discuss strategy and service improvements and provide access to and relationship with senior management. They work collaboratively and transparently to help CIOs deliver the flexibility and agility that the business requires. High-performance businesses need to respond quickly to market changes, improve operational efficiency and excellence, and accelerate growth. To do that, they are increasingly looking at outsourcing partners to deliver costefficient, flexible and scalable IT outsourcing models. p a g e 5 o f 6
Secure-24 IT Outsourcing Secure-24 is positioned to help organizations maximize the business value of their IT investments and lay a foundation for high performance with a wide range of IT operations, infrastructure and application outsourcing services: SAP application outsourcing Oracle application outsourcing To learn more about how outsourcing your applications and infrastructure to Secure-24 can help your organization achieve its business goals, contact us at: Secure-24 26955 Northwestern Highway Southfield, MI 48033 www.secure-24.com Application management Data center outsourcing Transformational application/it outsourcing endpoint management outsourcing Service desk outsourcing Network outsourcing Security outsourcing and operations IT management outsourcing Local: 248.784.1021 Toll-Free: 800.332.0076 Fax: 248.784.1024 Info: info@secure-24.com Sales: sales@secure-24.com HR: HR@secure-24.com Secure-24 is committed to helping your organization succeed by bringing the best innovations and technology to your IT needs. That s why we have developed strategic relationships with market-leading business and technology companies and emerging players. Working closely with our network of alliance partners strengthens our ability to deliver genuine business value to the enterprise and help clients make the most of their IT investments. p a g e 6 o f 6