October 16, 2018  
  Home About Us Contact Us
 Read terms of use Login Problems?
Help for Search
Subscribe to the Computer Economics Report. Free sample issue.
Research Sections
Major Studies
IT Management Advisories
Valuation Data
...and More
Register for free research notification

Critical Steps to Consider When Outsourcing IT Tasks

November, 2016

The maturation of outsourcing and the improving economy continue to provide good opportunities to leverage outside service providers for organizations of all sizes.

But up-front planning is needed to ensure that the outsourcing experience is positive. In this report we present the four essential steps that organizations can take to avoid major pitfalls and reap the benefits of outsourcing.

Figure 1 from our study, Four Essential Steps Toward Outsourcing IT Functions, shows that among small businesses that engage in IT outsourcing, 6.7% of the total IT budget is typically spent on outside service providers, compared to 6.3% among large organizations. Midsize organizations spend 4.7% of their total IT budget on outsourcing at the median.

While cost savings are often a driver for outsourcing, there are other strategic advantages to consider when looking at outsourcing. The need to preserve capital, reduce costs, improve operational flexibility, increase service levels, reduce management overhead, or rapidly deploy new capabilities can sometimes be even more important than cost. These other advantages can be especially attractive to smaller companies that have more difficulty sourcing best-in-class capabilities in all facets of the enterprise.

See the full report for an in-depth discussion of the four steps: 1) define the opportunity; 2) select providers; 3) develop details of the deal, and 4) negotiate terms and conditions.

This Research Byte is based on our report on this subject, Four Essential Steps Toward Outsourcing IT Functions. The full report is available at no charge for Computer Economics clients, or it may be purchased by non-clients directly from our website (click for pricing).

Questions about this research? Contact the Analyst.

Print this article.
Help Desk    Alliances     Privacy Policy  


© Computer Economics • 2082 Business Center Dr. Ste 240, Irvine, CA 92612 • tel: (949) 831-8700