Outsourcing

Infrastructure Strategies (IS) 2004 is an attempt in trying to delve into the mind of the technology decision makers and try to understand the technology decision cycle in great detail. The intention of the survey is to find out in which technologies corporate India is currently investing and where it wants to invest in the future.

Stabilized connectivity

In the wake of increased competition and the economic downturn, how do businesses ensure profitability and growth without increasing operational costs? The answer to this question lies in 'Outsourcing.' The premise behind Outsourcing is simple: Why do something yourself when someone else can do it better and cheaper? In Outsourcing, the key lies in flexibility.

IT infrastructure implementation and maintenance forms an important part of an organization's outsourcing strategy. As per survey findings, about 45 percent of the companies have already invested in some sort of outsourcing or are planning to invest. About 30 percent of the companies have invested in outsourcing in the last financial year, and the same number plan to invest in the year 2003-04.

Why Outsource?

Outsourcing provides numerous benefits in terms of reduced operational and infrastructure costs. So what are the main factors driving Indian organizations towards outsourcing?

As it will be obvious, 53 percent of the respondents to Network Magazine - IMRB survey titled 'Infrastructure Strategies 2003' say it is their 'Desire to reduce costs' which is driving them towards outsourcing. This is closely followed by 'Focus on core competencies' (47 percent) and 'Access to special expertise' (41 percent).

In the wake of increased competition and a slump in the economy, CIOs and CTOs are under pressure to extract the maximum from existing infrastructure. Yet at the same time, IT budgets are constrained, and IS managers are expected to reduce costs associated with operating and maintaining IT infrastructure. Companies want to concentrate on their core competence and not worry about developing expertise for IT systems in-house.