Point of View
Think Before Outsourcing IT
Outsourcing is hot. So is its derivative, off-shoring. We're led to trust its validity by the burgeoning number of glowing quotes we read from CEOs who claim they are saving millions by sending jobs to places like Mexico or India. And it's not just assembly and telecommunications jobs. As the pundits point out to each other, the jobs leaving our country are no longer just cheap manufacturing jobs, but high-paying information technology jobs. Big companies have been outsourcing their IT function for some years. IBM's global consulting business has grown quickly by offering outsourcing services to companies like Eastman Kodak. The strategy is to allow businesses to concentrate on their core competence. The thinking goes, "We make widgets," or "We sell services. We aren't experts in information technology. This way, we can shop for the best deal and have the most flexibility."
I, for one, don't buy it.
When it comes to IT, the most important return on investment is making sure managers get the information they need to make better decisions. Managers do one thing for a living: they make decisions. The quality of these decisions is directly correlated to the quality of the information those decisions are based on. In this context, "quality" means relevance, timeliness and usability. You should think of high quality information as your company's "crown jewels."
The survival of every business today depends on decisions IT managers make. Yet more and more companies are building new barriers - distance, organization and process - between the IT professionals who can help and the people who need help the most. Isn't the point of IT to cut down on time spent processing data? A manager's request for pertinent information should be fulfilled within days, not weeks, months or years.
Most organizations' IT departments are filled with ex-programmers at all levels. But there is nothing about managing IT that requires a technical background. Encourage non-technical managers to run IT – and encourage IT professionals to work in the “business side.” The whole idea is to break down the wall that forms between IT and “the business.”It doesn't matter what business you're in: information must be one of your most important resources. If you're not getting the information you need from your IT investment, by all means change things.
Most companies don't know whether they really make money by product, by customer, or by both. Start there. If you don't know, and you probably don't, ask how outsourcing will finally get you that crucial information. But don't use frustration, lack of imagination or misguided cost cutting as an excuse to pawn the crown jewels.