IT Outsourcing Potential Costly Mistake for Small Enterprises

Small enterprises risk spending an incremental 75 percent on outsourced IT functions versus keeping them in house if outsourcing is not managed properly, a recent impact research study from Info-Tech Research Group reveals.

Effective vendor management can be challenging for small companies that outsource. Despite the inherent challenges, small enterprises tend to outsource more of their IT functions than larger organizations in an effort to keep pace with growth and demand for a full breadth of IT services. Where small enterprises do have success in outsourcing is most often with infrastructure and application support, where fluctuating levels of manpower and expertise are needed to support IT projects. To give organizations the best chance of success, Info-Tech Research Group recommends that small enterprises carefully assess organizational fit before entering into outsourcing agreements to ensure alignment with both IT and Corporate priorities. If outsourcing is the best option, small enterprises should then invest the necessary due diligence up-front, clearly document the processes to be outsourced and implement ongoing vendor management to ensure success. For the Impact Research Report IT Outsourcing with Purpose, Info-Tech defined outsourcing as any engagement where a third party has ownership over a deliverable. Source: www.dmreview.coma>

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