IT outsourcing continues to evolve and change, at its heart outsourcing is neatly described in Gartner’s glossary “Outsourcing is the transfer of services that would otherwise be performed internally to a third-party service provider to drive cost optimisation and efficiencies.”
The changing nature of technology and digital evolution is having an impact on the type of IT outsourcing seen in the market today. The benefits of labour arbitrage are being eroded by automation and a need for flexible, ‘business intimate’ services or solutions.
The ever changing march from legacy, bespoke, on-premise applications to flexible cloud hosted as-a-service alternatives are changing the requirements clients demand from service providers. Providers must offer tools and services to help their clients leverage a modern multi-service IT landscape in a secure and flexible way.
There has been a trend to insource some aspects of technology delivery to provide closer business engagement and more rapid cycle times. However, shortage of the necessary skills, a need to provide maximum cyber security protection and ever increasing complexity is further strengthening the role of outsource service provider in the information technology service delivery.
Businesses are looking for help to transform and remain competitive against digital native organisation who are not constrained by complex and extensive legacy technology estates. During the pandemic the need to adapt services and rapidly change the way we work further highlighted how a responsive and flexible technology partner is a genuine asset.
A consulting organisation, such as Peru, can help businesses take a fresh look at their IT landscape and delivery partners. We can advise you on what others are achieving in your sector and explore sourcing options and potential partners to realise strategic objectives.
A make-or-buy decision is the act of choosing between producing a product or service in-house or purchasing it from an external supplier. Make-or-buy decisions, like outsourcing decisions, speak to a comparison of the costs and advantages of producing in-house versus buying elsewhere.
The costs involved if you ‘make’ are direct labour expenses, incremental equipment, capital, facilities and managerial expenses and, any follow-on expenses resulting from quality and associated issue resolution.
To compare, the benefits of buying or outsourcing might include securing products and services at a lower overall cost, improved efficiency, access to skills when needed, embedded best practice or innovation, reduced time to supply or lessen risk exposure. It also helps you keep abreast of leveraged process efficiencies and advances in technology.
Self-provisioning, or self-service, is a feature among many cloud providers which allows their end users to provision resources by themselves and set up or launch a service or application without the intervention of dedicated IT personnel or the providers themselves. This gives users greater freedom in using services within the bounds set by the provider. However, many early adopters have discovered, to their cost, that if cloud environments are not suitably monitored and managed the risks to the business in terms of service availability, performance, data security and operating charges can be significant.
Should outsourcing, either for the first time or an iteration, be part of your sourcing strategy Peru’s experience and market knowledge will help accelerate the process and provide a proven framework from which to embark on the project.
Our team bring a variety of attributes to your sourcing project:
Peru practitioners are experts in sourcing consulting and contracting and specialise in helping our clients from all sectors and industries successfully manage, leverage value and pro-actively govern their third-party arrangements. Our people reflect our values, and we guarantee a collaborative, quality, agile and trusted service. As Peruvians we differentiate ourselves through our “Triple A” consulting principles: Accelerate – Identify and deliver value early, Assure – the right things and provide certainty and Augment – be a part of the team and hit the ground running.