Infrastructure outsourcing is when a third party manages an organization’s IT systems and applications. This trend started in the 1990s and can include management of network routers, switches, security mechanisms, and more. Outsourcing can simplify infrastructure and reduce IT costs, but it’s important to choose a reputable service provider.
Infrastructure outsourcing is a subcontracting service in which the management of an organization’s information technology (IT) systems and applications is handled by a third party. While these services have become very popular in recent times, the concept of outsourcing is not entirely new. In fact, companies like EDS, IBM, and Unisys started the infrastructure outsourcing trend in the early 1990s by acquiring full ownership of their client companies’ employees and IT assets.
Management of a company’s IT infrastructure and applications is often done from a remote location, usually in the service provider’s data center. Some choose local facilities, while others choose to outsource offshore. In the typical arrangement, the contractor takes a number of proactive steps and corrective actions to ensure that all of the client’s IT assets are available to its clients at all times. For most businesses, this availability applies to more than just servers.
When entering into an infrastructure outsourcing agreement, a company may also receive management of its network routers and switches, security mechanisms, desktops and peripherals, disk storage and bandwidth. In an ideal environment, the service provider works with the client to create a customized and scalable solution tailored to their needs. Since the contractor typically manages every aspect of the infrastructure, this type of deal can free up time for a business to focus on its key initiatives, helping the organization dramatically increase business efficiency.
In most cases, infrastructure outsourcing aims to take the pain, confusion and cost complexities out of provisioning IT services for businesses with limited or no dedicated IT resources. Even companies with an IT department in place can benefit tremendously from the opportunity to control costs and track where its financial resources are going, while getting the IT services the business requires. With the right solution, an organization has the potential to greatly simplify its infrastructure and reduce the cost of IT operations.
Infrastructure outsourcing can help accelerate a company’s growth by freeing up internal time and resources that allow it to focus solely on its core competencies. However, it all depends on the service provider. Organizations requiring any type of business process outsourcing are encouraged to seek out reputable contractors who have a proven track record in the industry and use only the best IT practices. Selecting an infrastructure management partner is an important decision that can have a lasting impact on your business.
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