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True cost of outsourcing
In a chill economic climate, organisations are saving money wherever they can — and that can mean thinking what once would have been unthinkable and outsourcing the IT department.
The theory may make sense: an outsourcer will be responsive to your every IT need and you won't be paying staff to sit around and wait for problems. But with the outsourced approach come issues you may not have anticipated. Here are 10 of them.
1. True cost
Outsourcing IT generates hidden costs. For example, when you call in a representative from your outsourcer for an appointment, you'll be charged for the drive time there and back. And the outsourced engineer might have no idea how to solve your problem and has to acquire the knowledge on the job at your expense.
It's one thing for your own employees to learn on the job, but a contractor doing so is another matter. There are other real costs as well, such as the outsourcer's recommendations for acquiring new technology that isn't actually needed. Upselling among outsourcers is common and sometimes unnecessary.