Costs of outsourced IT

Filed under: — Posted on 2006.03.15 @ 11:36

Assuming the trend what the trade rags say is true, I think that firms are rethinking the idea of outsourcing internal IT operations. Cost is certainly a factor. Within an organization the external cost principle is at play - the user generating a cost by calling an outsourced help desk is not responsible for paying for it - which makes it difficult to control.

It’s difficult to control the cost of a service that doesn’t have simple interface between the two businesses involved. A service that is used by everyone in a firm can’t have a simple interface because it’s there’s too many parties onvolved. As a result extra controls must be put in place (usually by the the service provider), which add to the overhead costs allocated to each transaction.

Creative Commons License
This work is licensed under a Creative Commons License.
Powered by WordPress