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It Department

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Module 6: IT Department
Now days it is getting harder and harder to find a company whose IT department is not based in a foreign country where English is the primary language. It is amazing how many Carls, Steves, and Bobs in the world have such a difficult time explaining what is wrong with your computer in their native tongue. The fact is companies are finding that just like automotive and retail manufacturing, IT departments can be cheaper if you outsource them. Below you will read an argument supporting keeping an IT department in house versus outsourcing its work. I will discuss issues like network familiarity, troubleshooting timeframe, and priorities.
Module 6: IT Department
Lack of Information
In the article, To Outsource or Not To Outsource, Outsource magazine brought up the point about how cost alone should not be the deciding factor in outsourcing an IT department. One of the key issues they brought up is in-house versus a specialist. A specialist may sound nice, but is it as good as an in-house employee? Lets put this in a more understanding example.
Your car needs new brakes; this is the car that you drive your kids around in every day. Whether to and from school or to soccer practice this car quite often holds the most important possessions in your life. You have two options for mechanics to replace your brakes. Both mechanics have the same amount of experience working on automobiles, but their expertise and prices differ slightly. Option one is cheaper and experienced on all types of cars, trucks, and vans. Option two on the other hand is more expensive, but he has spent his entire career strictly deals with your car company; your car is his expertise. If you had to trust a mechanic with your children’s lives would not the extra money be worth it for option two?
The same can be said for IT departments. When you outsource you loose knowledge and expertise. You may work on your companies network everyday, but your outsourced IT department only works on it when it is broken, and even then they work on several networks everyday. Each time you deal with your outsourced IT department you have understand that they may know computers and networks, but they do not know your computers and networks.
Delays
The No.2 reason that Techrepublic.com had in their 2012 article, 10 problems with outsourcing IT, was Time Factor. As Techrepublic.com wrote, you are at the mercy of your outsourced IT department. When you outsource to lose the ability to control your own destiny. What happens when your network crashes and you need to be up and running immediately. What if our newly outsourced IT department cannot fix our issue remotely but has to come to our office. The new, cheaper IT department is most likely going to need hours to get here, start billing us straight away, and all the while our company cannot perform our business and make profit.
Another possible delay could be the importance factor. IT companies do not strictly work for one company. Their primary key to being successful is being able to work for multiple companies. Spreading the cost of system administrators, network administrators, and helpdesk employees over multiple companies instead of one company paying for it all is how they sell themselves to businesses. Take for example the companies Nike and Crocs both are successful, globally distributed, shoes manufactures. What if both companies had simultaneously computer crashes, and used the same IT company. Who do you think is going to get priority? The answer is simple, Nike. Nike is the bigger client. Nike operates in the billions, while Crocs is in the millions. Any intelligent manager or CEO would easily recognize which company is their priority as a client. Crocs could even have had their system crash before Nike did, and most likely when Nike called with their issue would become the new “priority,” and most of the staff would be diverted to them.
Conclusion
Outsourcing may look cheaper, but it will cost you more than that flat monthly rate this company is quoting you. New fees such as travel time and non-business hour emergencies will occur. With this decision you will also be delaying our company’s business ventures when issues happen, and potentially placing our financial wellbeing in the hands of other companies (who have their own agendas). I have given you two key reasons for keeping our company’s IT department in-house. If you decide to switch from an internal to outsourcing, you switch from insider, system-expert knowledge to cheap menial labor. So which mechanic will fix our company’s brakes?

References
Bakia, M. (2011). Outsourcing Is Not the Answer. Businessweek.com. Retrieved from http://www.businessweek.com/debateroom/archives/2011/06/outsourcing_is_not_the_answer.html
Anand, N. (2013). To Outsource or Not To Outsource. Outsourcemagazine.co.uk. Retrieved from http://outsourcemagazine.co.uk/to-outsource-or-not-to-outsource/
Wallen, J. (2012). 10 problems with outsourcing IT. Techrepublic.com. Retrieved from http://www.techrepublic.com/blog/10-things/10-problems-with-outsourcing-it/#.

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