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SMBs and the Outsourcing Decision
T functions most often outsourced by small businesses include
virus protection and security, e-mail and messaging, accounting
and payroll, and data storage and backup. However, some
companies may be wary of giving an outsider access to sensitive
information as it relates to customers, employees and financial
information.
Almost 60 percent of small companies' information technology is
outsourced to third-party providers -- and a number of whom are
in the Virginia, West Virginia, Maryland and Pennsylvania
quad-state area -- the largest of which are listed in the
Quad-State Business Journal's "2007 Book of Lists" under
Computer Dealers/Networkers.
As with many outsourcing decisions a small business owner must
make, the key question relates to whether or not the IT function
is within its core competencies; does it lie within the IT
staff's main areas of strength like desktop support? If not, and
depending on the complexity of the computer system and the
various applications used to manage the business, then
outsourcing may be the answer.
Cost considerations also come into play. Is it less expensive to
contract out a certain number of hours of IT support a month or
a year than it is to hire someone full time, and is that
individual easy to find? A lot depends on the company's budget,
as well as if backup support needed on a consistent basis.
Sensitive Information
IT functions most often outsourced by small businesses include
virus protection and security, e-mail and messaging, accounting
and payroll, and data storage and backup.
However, some companies may be wary of giving an outsider access
to sensitive information as it relates to customers, employees
and financial information. In that regard, only 16 percent of
companies with between 50 and 499 employees outsource technology
security, according to AMI-Partners, a New York City consulting
firm.
However, keeping up with the latest and greatest in security
software and procedures and more importantly, security threats,
may be a full-time job in itself. That function may best be
handled by an outside vendor.
Dealing With Outside Vendors
A recent article in the Wall Street Journal asked Paul Horowitz,
head of PriceWaterhouseCoopers outsourcing practice, for some
tips in signing on with an IT vendor. Here is what he said:
Have an exit strategy if things don't work out.
Meet the people from the actual team that will be doing the
work.
Do a thorough check of references supplied by the IT vendor.
Have in your files a second choice vendor if the first one
doesn't work out to your satisfaction.
Be careful of scope creep where work requirements change or are
added to the initial work plan.
Let your current employees know you plan to outsource some or
all of the IT work.
Make sure your data will be protected with a plan for security.
By Peter Heerwagen
Quad-State Business Journal
07/23/07 8:39 AM PT
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