Outsourcing is a strategic decision for any organisation. It’s also emotional, complicated and often means going down uncharted paths for your organisation. Get it right and the transformation will add to both your profitability and success!
aaS and Outcourcing are viable options
There’s good news though the path is significantly more defined than in the 1980’s. The difference is two-fold:
- organisations have a greater sense and understanding of what they require
- service providers now understand the mechanics and delivery requirements of good outsourcing
Increasingly organisations are choosing to meet their operational needs using a service provider to perform some part of their business operation.
This strategic step often stems from an organisation recognising they should focus on their core business and leverage experts / providers to deliver specific functional, operational or technical elements.
Outsourcing / aaS examples include:
- Cloud Services; Infrastructure as a Service (IaaS); Telecommunications (TaaS); Software (SaaS); Desktop (DaaS); etc.
- Human Resources (HR) Outsourcing; management, hiring, etc.,
- Financial Services outsourcing; accounting, debtors and Creditors, payment processing
Nines times out 10 it’s absolutely the right decision – so why is the number of organisations that proceed often much less? It’s a double-edged sword:
- Organisations fail to fully qualify current process, current costs, desired benefits and ROI; both tangible and intangible
- Solution Providers proposals either fail to paint the right picture or their execution doesn’t meet expectations
Occasionally the horror stories of other organisations attempts, get in the road. But for every poor implementation there are probably 10 that have met customers expectations.
Getting Outsourcing/aaS Right
While 9 out of 10 organisations will benefit from outsourcing, cloud services (aaS) or Managed Services, true success requires some effort for both the buying Organization and the Solution Provider:
- Definition of needs
- Develop state definition
- Operational requirements definition including desirable elements not currently performed
- Benefits qualification
- Real Return on Investment (ROI) calculations
- Impact assessment
- Change management review
Miss any of these steps out and the outcome of any cloud services or aaS will be less than 100% of the expected result. We estimate less than 60% get all of these items right. But get them right and you can expect 110-120% benefit return.
Outsourcing is a big step and we’d recommend involving experts to objectively and pragmatically work help you get it right. NineDots have been helping organisations take the step in outsourcing for more than 15 years. Take charge of moving forward, contact us to discuss successful review and/or implementation.