Capitalizing on the Cloud: Outsourcing vs. Out-tasking
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An infographic presented by business.twc.com/partner Sources: http://www.business2community.com/cloud-computing/tasking-key-getting-started-cloud-0903866#%21UUH5D http://www.emc.com/services/cloud/out-tasking.htm http://www.itworld.com/cloud-computing/162085/out-tasking-cloud Krishnamurthy, Karthik. "Strategic Out-Tasking: Creating ‘Win-Win’ Outsourcing Partnerships." Sept. 2007. PDF file. Advantages CAPITALIZING ON THE CLOUD: CAPITALIZING ON THE CLOUD: OUTSOURCING VS OUTSOURCING OUT-TASKING OUT-TASKING VS Advantages Disadvantages Disadvantages In today’s dynamic market, businesses continually need to adapt to shifts in customer preferences and market realities. IT outsourcing too often means that an organization cannot execute innovative responses to business or market needs. In addition, there is a lack of evidence to prove that outsourcing IT does result in significant cost savings. Selective out-tasking saves IT leaders from the troublesome task of transferring the business’s entire infrastructure to the cloud all at once. In reality, businesses experience vastly better results when they use the cloud as a means to augment and modernize their existing compute environment. Out-tasking is cost-effective for both businesses and providers, and it enables innovation by allowing businesses to retain ownership of their resources. With this model, businesses most likely will have an increasing number of outsourcer partnerships, requiring coordination and increased access to enterprise data. When out-tasking, businesses need to describe the vision and roadmap for implementation with the outsourcer. Communication is essential. Businesses need to be adaptable: they must be ready to change their visions based on business needs and new industry solutions. Out-tasking is expected to deliver $16 - $23 billion in industry bottom-line savings over the next few years. In the earliest application development and testing phase, businesses that out-task avoid the expense of buying gear that essentially functions as test servers. Out-tasking allows organizations to test the industry environment and end-user response. It’s flexible: businesses acquire specific services for a set duration and at a predictable cost.. Virtualization results in better asset utilization and increased labor productivity. When out-tasking operational transactions, companies free resources to focus on higher value interactions, such as improving customer experience and adopting new innovations. Cost savings: nearly 75% of companies with annual revenue of more than $1 billion say that they outsource primarily to reduce costs. No need to hire and train specialized IT staff. Businesses do not have to invest in IT infrastructure, software, and related services. Businesses relinquish all control of IT operations to a third-party. Businesses lose operational flexibility and innovation ability. Nearly 70% of enterprises say that outsourcers fail to meet expectations regarding innovation. It’s very unlikely that businesses will achieve lasting cost savings. Lengthy, restrictive contract terms force organizations to stay in relationships that do not serve the company. Deployments of emerging technologies are delayed. Outsourcing gone sour results in poor morale and operational difficulties for the business. IT outsourcing is a $233 billion global industry. Companies that outsource IT operations transfer all of IT operations to a third-party that retains control over those operations. In out-tasking, companies incrementally transfer specific, low-risk IT operations and/or applications to a specialized third-party provider.
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Most businesses choose to outsource IT operations to reduce costs, but is outsourcing IT truly the best decision? In actuality, businesses that follow this path increasingly report little to no cost savings, and 70 percent of them say that they have lost opportunities to innovate. It’s no surprise, then, that businesses now are looking to selective out-tasking, which is expected to deliver billions of dollars in savings over the next few years. Where do these savings come from? What are the real draws of out-tasking? View the infographic for more information.
Transcript of Capitalizing on the Cloud: Outsourcing vs. Out-tasking
An infographic presented bybusiness.twc.com/partner
Sources: http://www.business2community.com/cloud-computing/tasking-key-getting-started-cloud-0903866#%21UUH5Dhttp://www.emc.com/services/cloud/out-tasking.htmhttp://www.itworld.com/cloud-computing/162085/out-tasking-cloudKrishnamurthy, Karthik. "Strategic Out-Tasking: Creating ‘Win-Win’ Outsourcing Partnerships." Sept. 2007. PDF file.
Advantages
CAPITALIZING ON THE CLOUD:CAPITALIZING ON THE CLOUD:
OUTSOURCINGVS
OUTSOURCING OUT-TASKINGOUT-TASKINGVS
Advantages
Disadvantages Disadvantages
In today’s dynamic market, businesses continually need to adapt to shifts in customer preferences and market realities. IT outsourcing too often means that an organization cannot execute innovative responses to business or market needs. In addition, there is a lack of evidence to prove that outsourcing IT does result in significant cost savings.
Selective out-tasking saves IT leaders from the troublesome task of transferring the business’s entire infrastructure to the cloud all at once. In reality, businesses experience vastly better results when they use the cloud as a means to augment and modernize their existing compute environment. Out-tasking is cost-effective for both businesses and providers, and it enables innovation by allowing businesses to retain ownership of their resources.
With this model, businesses most likely will have an increasing number of outsourcer partnerships, requiring coordination and increased access to enterprise data.
When out-tasking, businesses need to describe the vision and roadmap for implementation with the outsourcer. Communication is essential.
Businesses need to be adaptable: they must be ready to change their visions based on business needs and new industry solutions.
Out-tasking is expected to deliver $16 - $23 billion in industry bottom-line savings over the next few years.
In the earliest application development and testing phase, businesses that out-task avoid the expense of buying gear that essentially functions as test servers.
Out-tasking allows organizations to test the industry environment and end-user response.
It’s flexible: businesses acquire specific services for a set duration and at a predictable cost..
Virtualization results in better asset utilization and increased labor productivity.
When out-tasking operational transactions, companies free resources to focus on higher value interactions, such as improving customer experience and adopting new innovations.
Cost savings: nearly 75% of companies with annual revenue of more than $1 billion say that they outsource primarily to reduce costs.
No need to hire and train specialized IT staff.
Businesses do not have to invest in IT infrastructure, software, and related services.
Businesses relinquish all control of IT operations to a third-party.
Businesses lose operational flexibility and innovation ability.
Nearly 70% of enterprises say that outsourcers fail to meet expectations regarding innovation.
It’s very unlikely that businesses will achieve lasting cost savings.
Lengthy, restrictive contract terms force organizations to stay in relationships that do not serve the company.
Deployments of emerging technologies are delayed.
Outsourcing gone sour results in poor morale and operational difficulties for the business.
IT outsourcing is a $233 billion global industry. Companies that outsource IT operations transfer all of IT operations to a third-party that retains
control over those operations.
In out-tasking, companies incrementally transfer specific, low-risk IT operations and/or applications
to a specialized third-party provider.
