Pertinent discussion why SME is suitable for Outsourcing in current business world

Most SMEs focus on improving business processes and strengthening its competitiveness.    We anticipate that IT Outsourcing can become attractive to them.    Why:-

IT industry is very dynamic in the last 10 years.  It is difficult to keep up the trend while it is not part of the core business area.   Internal IT staffs have to stay up-to-date to face the IT challenges from external environment and contribute new IT benefits by deploying latest technology.  This often means high training and up-skilling costs for employees.    On the contrary,   the investment on training may not directly benefit the company.   Even though obtaining IT certificates, they are still lack of hands-on experience to handle the latest complicated software and systems.

Internal IT staffs are often get bored if they are not challenged.  The only way to stimulate them is to upgrade IT system which is unnecessarily and costly for most SME.

Similarly, retaining internal IT staffs means that the company relies heavily on individuals.   This can be an issue where a small IT people team in a SME often cannot document information in detail.  In reality, most SME only can afford to hire 1 - 2 IT people.    When they leave, it is a risk to the company.  Software licensing is a good example.  Nobody knows how many legal license softwares are purchased in the company.

Beauty of Outsourcing

Outsourcing contracts can be operate very much like your mobile phone package.   You request what you need.    Depending on the number of users, hardware and software, operating systems, as well as your budget, you can customize the service level that both suit you and your service provider.

Key to Success

The keys to make your Outsourcing project success are “Transparency, Trust and Collaboration”.  The responsible does not only fall into the service provider, the customer should also contribute quality resource to build the relationship.  Successful outsourcing does require a workable processes and procedures.  Examples are regular service meetings, agreed review processes and reporting procedures.

Be reminded, a Service Level Agreement is not just a contract.  It should be a live and operational document.  Do not just put in a drawer after signing it.  Review it regularly and make it fresh.