Archive for category Outsourcing
After hundreds of conversations with CIOs, CFOs and CEOs I noticed a few common threads when discussing outsourcing.
The first commonality across companies was that rarely was everything in good shape in regards to IT. Because after all, if IT was in good shape all of those C-Level executives would be focusing their attention elsewhere. The oft-quoted story that applies to most CEOs, and other C-level executives, goes as follows: “when asked what kind of problems they typically see, the CEO said ‘I only get to see or hear about the hard problems, because if they were easy they’d already been solved before they got to me.’”
Large companies have been outsourcing business and IT functions for quite some time but small and medium sized companies have been much slower to embrace the opportunities and benefits that outsourcing can bring. It’s not just the classic business or IT functions like payroll or call-centers that have been ripe for quite some time but the newer software as a service (SaaS) functions for things like expense reporting, CRM and ERP functionality in addition to things like network management, HR and even virtual assistants.
I recently read an interesting McKinsey Quarterly article on Managing IT during a downturn. IT spending and costs, like so many business functions, wax and wane with business cycles. Spending increases gradually over time before a shock or other external event occurs requiring significant and rapid cost cuts.