The Lighter Side Of The Cloud – Encryption
The Lighter Side Of The Cloud – Thunderstorm
The Lighter Side Of The Cloud – Cloud Therapy

Outsourcing Services – Risks And Advantages

Outsourcing Services – Risks And Advantages

Outsourcing non-core activities represents an essential preoccupation of every modern IT company. But, as IT companies consider the vast positive aspects and allure of IT services outsourcing, they must balance the risks and issues with the potential for labor arbitrage (the economic phenomenon where jobs move to countries where labor and the cost of doing business is inexpensive).

Advantages

  • Save money: Organizations that decide to outsource IT services, whether offshore or through a nearby service provider, transform fixed expenses to variable ones, liberating up capital for utilization in other areas.
  • Focus on Core Operations: Outsourcing IT services enables you to pay attention to the core capabilities of your company.
  • Having IT resources near those of big companies: Outsourcing IT systems and services creates a more reasonable playing field between small firms and large organizations.

Risks

Purchasers of outsourcing services must seriously consider risk. The results are often included in the outsourcing contract. Because many IT companies outsource their infrastructure to cloud suppliers, a Service Level Agreement is an essential topic. According to IBM, a Service Level Agreement “defines how the consumer will use the services and how the provider will deliver them”. I recommend you to read further about this topic on this article.

The potential risks of outsourcing IT services are:

  • Questionable Accessibility: Companies that depend on an outside service run the risk of downtime during critical system failures, leading to possible decline of productivity. Usually, providers offer warranty for operations in 99.9% of the time, so this risk is minimized.
  • Loss of Personal Touch: An in-house system manager becomes familiar with the system he/ she manages. As a result of this, he/she can provide results more efficiently, rapidly and professionally. IT outsourcing solely can’t provide a personal touch that comes close to that of an in-house IT professional. The solution consists in considering IT outsourcing provider being an extension of the own team.
  • Questionable Security Protocols: Companies must examine whether the outsourcing provider utilizes security procedures as powerful as their own. This is especially important when interacting with offshore providers. While these often have outstanding security standards, there is always the risk that one of the outsourcing company employees will break security. You must be careful when you negotiate the Service Level Agreements with the provider. It is also important for you to understand exactly how your applications and data will be protected and the policies that the IT services provider follows to maintain the security of your data.

Before taking the decision of moving to the cloud, every company manager should take into account the risks and advantages for its company and make the most appropriate decision for the organization.

By Rick Blaisdell

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

Sorry, comments are closed for this post.

Recent

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

The Lighter Side Of The Cloud – Due Diligence

The Lighter Side Of The Cloud – Due Diligence

By David Fletcher Please support our comics by sharing, licensing or visiting our cloud sponsors (Below). Your support goes a long way in allowing us to continue to produce our lighthearted comics each week.   About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information.…

Popular

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Cloud Infographic – Interesting Big Data Facts

Cloud Infographic – Interesting Big Data Facts

Big Data Facts You Didn’t Know The term Big Data has been buzzing around tech circles for a few years now. So much, in fact, that you’re probably getting sick of hearing about it. Here are some interesting facts you might not know about big data via The Visual Capitalist: Big Data got its start in the…

Cloud Infographic – The Internet Of Things In 2020

Cloud Infographic – The Internet Of Things In 2020

The Internet Of Things In 2020 The growing interest in the Internet of Things is amongst us and there is much discussion. Attached is an archived but still relevant infographic by Intel which has produced a memorizing snapshot at how the number of connected devices have exploded since the birth of the Internet and PC.…

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats

Cloud Infographic: Corporate IT Security Stats Each week on CloudTweaks we provide a few shoutouts to companies who provide engaging and interesting infographics that reflect our readers interests.  In this case, we have an excellent infographic provided by the team at arellia.com which takes a closer look at cyber-security and some of the biggest malware threats…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

Sponsored Posts

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Branded Content Programs

Advertising