Services for monitoring company employees and contractors on projects (outsourcers).
A program for monitoring the actions of employees, information flows and system events.
Analysis, blocking and notification of dangerous and unproductive activities.
In today's world, there is a growing desire to reduce costs and increase efficiency through technological innovation. This naturally leads to an increase in the number of IT projects in which the success or failure of the business often depends on the ability to complete these projects on time, on budget and to specification. Developing your own capabilities to deliver on these projects can be a costly and risky endeavor, especially when an organization's IT needs are constantly changing. What's more, in today's business world, where falling behind the IT innovation curve can spell disaster, very few companies have static IT needs. Even companies that are happy with their IT business as usual can easily rely on outdated systems that can harm the business if they fail. When companies look for outside help to complete IT projects, they usually look at two models: staffing and project outsourcing.
Increasing the number of IT professionals allows a company to add employees to their teams based on additional skills, needed to support their initiatives. Resources are occupied by a staff augmentation firm.
"Companies can easily scale up and down to meet changing demand without incurring the costs and obligations of additional full-time employees"
Reducing training costs. Training and skill development is the responsibility of the outsourcer.
Best Practices: Using industry best practices can be achieved simply by having the outsourcer follow the best practices themselves. Outsourcers have a responsibility to invest in adopting, maintaining and improving best practices.
Scalability. Just as it's easy to add or subtract staffing resources, it's also easy to scale up and down with project outsourcing.
Economics of scale: There is significant impact when awarding large contracts with outsourcers. Outsourcers also benefit from their own economies of scale in delivering projects within their core competencies.
Reducing management overhead: management is the responsibility of the outsourcer.
Model results-oriented: responsibility for achieving results lies with the outsourcer. Companies buy consistent results. Outsourcers share the risks and benefits of an IT project.
Focus on the core business: Because the responsibility for delivering results rests with the outsourcer, companies can focus on results and their core business.
Employee versus contractor: Project outsourcing avoids employee and contractor legal issues.
Overcomes lack of in-house capability: Companies Those who do not have in-house capabilities to complete certain projects typically find it more cost-effective to outsource their project needs than to develop those capabilities in-house. This is especially true for one-time and intermittent needs of companies that do not have an IT department or developers.
Variable cost structure: transferring fixed costs (employees) to variable costs (project costs) that change in proportion to the current level of project activity. This improves operating leverage.
The possibility of legal redress: when a project is carried out in-house, any project failures or resulting liabilities are the responsibility of the company. When a project is outsourced, contracts are usually structured in such a way that the outsourcer assumes this risk.
Lack of control: control of everything from high-level processes to individual resources is left to the outsourcer.
Internal resistance: some, within the company may feel threatened by the project outsourcing model. While most project outsourcing serves to overcome a lack of in-house capacity, some in-house staff may be concerned that this model will reduce in-house staff in favor of project outsourcing.
Finding a quality outsourcer. When a company seeks to meet a need that goes beyond their core competencies, it can be difficult for them to assess the quality of potential outsourcing firms.
Smaller projects: Smaller projects may be less cost effective within the model project outsourcing than the staffing model. Some outsourcers may be reluctant to take on smaller projects and may charge extra for such work.
Integration with back-end processes. Integration with complex and unique back-end processes can be more difficult in project outsourcing model, which increases the need for business-IT alignment.
A hybrid approach
For most companies, there is no single approach. Some needs are best met by increasing staff, others by outsourcing projects, and sometimes these needs overlap. Consider an example of two interdependent projects: the first project belongs to the core competencies of the company, but additional specialists are required to successfully complete the project, the second project does not belong to the core competencies of the company at all. In this case, a hybrid approach may work best when staff growth is used to attract the necessary talent for the first project, and project outsourcing to complete the second.
Choosing the right model
Choosing the right model can be a tricky decision. Many of the factors described above can form part of a detailed cost-benefit analysis. While some companies feel comfortable making this decision internally, others may find it helpful to seek advice from an IT consulting firm. Below are some basic guidelines that can help in the decision-making process.
- IT outsourcing
- Staff increase
- Design Services
- Delivery model