IT Outsourcing: Becoming “Ok” to talk about again

Five to six years ago “IT outsourcing” was a phrase that carried a very negative connotation, linking outsourcing to shipping jobs overseas and taking jobs away from the American people.  I can remember watching Lou Dobbs’ segment “Exporting America” where he listed off the companies who were outsourcing all types of work overseas (and basically saying “shame on them”).

IT Outsourcing was the most visible type of outsourcing since every time you would call for IT support on any home electronics you would almost certainly get someone on the phone from the other side of the world.  Combine that with the negative stereotype of losing American jobs to foreign countries and the IT industry had created (accidentally) a country where “outsourcing”, and specifically for IT, became a taboo concept to discuss.

A few years ago “Managed Services” exploded within the IT industry and has been growing every year.  A Forrester research report predicts a 20% growth in Managed Services next year even in this down economy.  But if you look closely, isn’t Managed Services the same as IT Outsourcing but with a different name?

Essentially, Managed Services is a form of IT outsourcing.  The reason for its growth and popularity:  No matter how much people cringe at the thought of “outsourcing”, the benefits of outsourcing some or all parts of IT is a tremendous solution for most organizations.  Ultimately, outsourcing non-core competencies is how companies keep competitive advantages, gain flexibility, leverage additional services and decrease costs.  This in turn allows them to focus on their core business units to drive business growth.  A true win/win when contracted correctly.

As of late we’ve seen a trend toward “outsourcing” IT Services becoming acceptable to talk about again.  This may stem from a need in a down economy to cut costs and improve business efficiencies, but also may be generated by improved knowledge of what IT outsourcing can really mean.  The fact is, Managed IT Services can be outsourced to a group of individuals down the street, in the next town, or even across the country.  There is a misconception that outsourcing only involves sending jobs overseas or to a remote facility where clients “lose control”.  Compuquip’s Managed IT Services offering involves outsourcing your IT to a group of expert individuals in South Florida and transitioning appropriate in-house staff to our team.  In fact, we’ve grown our employee headcount solely from the growth in this offering.

As IT outsourcing has become an acceptable concept again, there has been a significant increase in executives and IT leaders talking about, exploring, and contracting with us for Managed IT Services.  We’re excited and proud to work with these individuals who are new to the Compuquip family of clients or will become clients soon.

By Brian Dosal

For any questions on Compuquip’s offering, please email bdosal@compuquip.com or call 305.436.7272 ext 1143.

Lauren Quinn
Marketing Manager

Posted on September 1st, 2009. Filed under Industry Updates.

  • http://www.kpo.com KPO Services

    This was a pertinent post. An interesting and well written article. As outsourcing has opened and continues to fill in big opportunities then and now evolving small businesses, we’re able to bravely face the challenges. You shouldn’t be giving up what you have started after all those pitfalls but you should bravely revive once more. Once you’ve known how outsourcing really works, you’ll be happy as well to look at the bright side and plan ahead for tomorrow’s advantage.

    Tina