How to Migrate to Managed Services: Four Critical Steps
Handling all your IT functions in-house was once thought of as a conservative, money-saving strategy. Today, the effectiveness of managed service offerings is making it clear that some things can be outsourced more cost-effectively than they can be done in-house. Here, Knowledge Center contributor Wayne Kiphart shares four critical steps to getting your feet wet with IT outsourcing.
Making the transition from an all-internal IT team to outsourcing key technology tasks to a managed services provider (MSP) is often the hardest step to take on the road to a more successful, better run and more cost-effective business model. To succeed, you have to realize that no one is getting a huge IT budget increase these days. The only way to keep up with the changes in business today is to rethink how you deliver IT to your company.
When organizations consider different ways to support their IT environments and increase return on investment, they must first determine how outsourcing fits and what opportunities exist for outsourcing selected IT tasks.
Really, it comes down to four strategic steps. If you follow these steps, you'll be well on your way to a solid, cost-effective IT outsourcing program that makes sense for your company and your specific business model.
Step No. 1: Start at the pain
Define the specific IT tasks that are candidates to be outsourced, choosing the technology areas within your company that you already know could be working better. Establishing a clear set of objectives at the outset and a defined resolution to the problems causing these pain points is critical to a successful outcome.
Step No. 2: Calculate your costs
The goal of outsourcing, while multifaceted, always includes a desire to reduce costs. This means conducting an assessment of the real costs of the tasks you are considering outsourcing and determining how much time personnel spend on these tasks. Then you can compare these costs to your outsourcing partner's service contract, determining what your savings can be.