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IT outsourcing

The levels of outsourcing

Outsourcing passed through the evolution process last years, which determined its basic three levels according to the rate of cohesion between provider and client. When we talk about the strategic or synergic outsourcing we decide the lower levels included.

Commodity Outsourcing

Represents the basic model of the cooperation, when the technology is generaly known and clearly defined (so called infrastructure layer -Hardware, Software, LAN, WAN and complex solutions). The content and conditions are markedly defined by the accepter. Commodity Outsourcing allows to replace or replanish the IT department from the sources of supplier. This is a functional system of management and prduction in IT branch where every client has the professional team of the supplier on disposal, using it according his own needs. The client  acquires wide span of services, solutions and advancements. This cooperation brings besides the technological advantages an distinct redustion of costs comparing to running own IT department while the level of services is kept or raised.

Synergic Outsourcing

Represents the mid-level of cooperation, where the technology is well defined, used and complex. It includes besides the infrastructure also functionality which means company processes and information flows through unique environment. The accepter - client - chooses above his own commodities also from available solutions of the supplier thus creating synergy - one party receives what it needs and the other provides what it already owns. In these cases supplier for example designes and implements the management systems like ERP, CRM and other system applications, which he developes on his own or provides in cooperation with other subjects, but thanks to span of his competency is also able to ensure the integration, support and development (economics, accounting, CRM systems and others).

Strategic Outsourcing

Represents the highest level of cooperation when after the above mentioned phases comes strategic, often unique solution according the know-how of the supplier. Strategic outsourcing is the partner of the client's development and expansion with the highest additional value of outsourcing.

Personal Outsourcing

The supplier embeds his specialist to the accepter's team. This is a specific type of outsourcing, which consists in sharing of top human resources. The expert has more occasions of his development, therefore he is more stabilised. The agreements are signed for the defined period according to the required level of the expert.

It is possible to look at the consecution and effectivity of the outsorcing levels in the same order depending on the phase of development of the clients company. Commodity outsourcing is necessary when savings, effectivity and reduction of technolocical and cost risks are needed. Synergical outsourcing enables the positioning and market differentiation with the minimised management risk. With the strategical outsourcing the structuring and company expansion as an advantage can be reached.

What does the IT Ousourcing bring?

Economical advantages - the majority of czech managements assume that outsourcing is more expensive than own running own department. For the first look it seems that it is more profitable to run defined scope from own sources.Therefor we mention the factors which are wery often not included in financial premeditation evaluating the running of own department and are very often undervaluated.

  • Consulting services for the development of the information system
  • Costs of selecting processes of the new equipment
  • Dissolution of older technologies
  • Testing of new technologie before implementation
  • Supporting technologies which are not fully used
  • Organisation costs for employees (workplace, personal costs, insurance, motivation)
  • Operator's, administrator's and programmers training
  • Exact overview of IT costs
  • Precalculed, regular and planned costs
  • Own risk in case of IT system failure (possibility of supplier penalisation)

HR advantages

Togehter with the economics are also very important. The key advantage is the guarantee of experts disposal, who are familiar with the clients information system (mostly designed and implemented by them). The company, which is not involved in IT branch, using the IT for its own bussines plans can use the services of outsourcing supplier.Another straight advantages of the outsourcing are:

  • Substitutability of operators and admins
  • Expert teams for lot of IT scopes(Knowledge Base)
  • Knowledge if the newest technologies
  • IT issues experiency
  • Employee's involvement

Administration advantages

Delegation of the IT administration processes to the supplier:

  • Development and maintanance of the IT office
  • Responsibility for the IT office management
  • Preparation for the information system audit
  • Project management of all processes inside the information system