From: SupplyChain Digital
Capgemini, a French global IT services company and one of the world’s largest management consulting, outsourcing and professional services companies, has released it’s write up of the top 10 reasons businesses should consider outsourcing. Contributing writer Jim Davidson, Infrastructure Services Executive, Capgemini
1. Global Reach
Outsourcing today is seen as the need to find solutions that help connect people, processes and technologies that are located around the globe 24 hours a day, 365 days a year. CIO’s who outsource to providers who can leverage this critical function allows CIO’s to focus on key business drivers.
2. Operating Expenditures (OPEX) Rules
Outsourcing shifts capital expenditures into operational costs which can help improve financial measurements by eliminating the need to show return on equity from investment capital.
3. Innovation and Interoperability
CIO’s who can tap into resources that help shape the ability to create and drive new products to market (such as SaaS) can be critical in developing new business strategies.
4. Service Transparency
Use metrics as a key indicator of the success of IT.
5. Savings in Labor Cost
This is one of the most basis reasons why companies evaluate the cost savings benefits of outsourcing.
6. Centralized Management of Resources and Functions
Outsourcers have developed ways of consolidating many internal functions (such as service desk support, different operating technology standards), CIO’s looking leverage this consolidation will realize greater control of resources and functions to avoid unnecessary duplication and cost reduction.
7. Improve Regulatory Controls
For most businesses achieving, measuring and maintaining compliance is a complex and capital-intensive endeavor. When companies look to outsource the design, execution and auditing of certain functions the relationship can lend both to benefits and burdens. In order to minimize these effects it is important to have a well-executed contract with a proven service provider.
8. Accelerating Process Maturity
The mere act of outsourcing can often be a driving factor in business process maturity and help build a more customer and process centric organization. Companies who leverage frameworks (such as the Information Technology Infrastructure Library {ITIL}, Sig Sigma, and the Control Objectives for IT {COBIT}), can drive a set of best practices application across the whole organization.
9. Increased Resources
Outsourcing provides companies the ability to reach into the global pool of talent, in order to acquire new skill sets for project work, mergers and acquisitions, and/or expansion into new regions.
10. Improving Company Strategic Focus
Drive innovation by letting an outsourcer focus on managing operational functions while your company focuses more strategically on it’s own core business.
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