Why You Need To Outsource IT Services For Business Growth

An in-house IT department plays an extremely vital role in an organization; however, it often requires a significant investment. Therefore, if having an in-house IT department is well outside of your company’s financial capabilities, then hiring outside professional IT services can be a wise and cost-effective move. However, if your company is considering to outsource IT services, there are factors that you must consider.

After all, when your company’s core values and culture do not match those of the IT firm, the results can be catastrophic. So, how should you go about hiring an outside IT service team?

Independent Contractor vs. IT Firm

Businessman typing on a laptopYou can choose to create an IT team that comprises of independent contractors. An independent contractor is an individual who is adept at IT services and is similar to a part-time employee. A contractor will often make use of company resources to provide the services required. However, they do not receive the same benefits as full-time employees.

On the other hand, you can choose to have an IT team from an IT firm. Often, IT consulting companies specialize in outside IT services, rely on their own resources and charge a base fee to clients in exchange for the assurance of 24/7 IT services. IT firms offer more excellent quality and competency of IT services.

Before outsourcing It services, it is imperative to understand the role they will play and the benefits they bring in your company. The primary roles and benefits of an IT team in your business include:

– IT administrator: Oversee all IT issues in the company including online security.
– IT Adviser: Is the IT advisor of the company as well as its employees. Will educate employees on how to spot online security threats, how to use IT resources, etc.
– IT service Provider: Provides the company with comprehensive IT services that might include making sure the company’s network is fast and secure.

An external IT team will shake things up in the company and bring real change. Therefore, if you want nothing but the best, then outsourcing an IT team might be the best solution.

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Impact Of Technologies In The Business

For several years now, we have been working hard on two particular and very beneficial topics for both companies and countries: productivity and competitiveness. The first one indicates how to do things most efficiently and effectively possible, and the second one tries to measure if doing the first one, we can compete for the clients in the market.

Computer technology is one of the most useful tools for improving productivity and competitiveness in companies. They offer the possibility of being much more efficient in the use of resources while allowing much greater flexibility and agility to meet increasingly changing customer requirements.

It is demonstrated that information and communication technologies influence productivity by contributing in the following areas:

Costs reduction

Increase in Sales

Improvements in profitability

Improvement in the satisfaction and loyalty of customers and suppliers

Make organizational structures more efficient

Facilitate staff training

Improve communication within the company

Improve communication with suppliers, government and other partners

This is just a short list. The impact of the use of ICT has even been measured by the World Bank, generating relative differences between companies that do not use ICT and those that do. The differences favor companies that use ICT more than three percentage points in sales increase and more than five percentage points in productivity improvement.

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Know your Business Model First To achieve the best impact of Information Technology

To achieve the best impact of technologies in your business, it is essential to have clearly defined your business. Otherwise, it would be to invest time and money in technologies that had less impact. The business model is composed of three concrete elements.

The first element of the business model involves being very clear and understanding what is sold, what is offered and why money is earned. The company that manufactures Rolex watches is evident that what it provides is prestige or status, through a jewel (its product), and makes money by a reasonably wide margin between the cost of production and the sale price. A Rolex cannot be sold to whoever is looking for a watch with the sole purpose of knowing the time. The same must be clear to your company: what it sells (product/service, the item that is included in the invoice), what it offers (the value the customer receives when buying what you sell), and how he makes money

The second important element in the business model is customer knowledge. This knowledge covers a series of specific questions to be able to know what the client is, how the market is covered, what attracts the client and what makes it come back. This knowledge allows defining clear advertising strategies, prices, channels, service and other essential components of the client’s experience, achieving effectiveness and productivity in their attention.

The last element verifies the way in which what is sold is obtained or produced. Here you define supply chains, contacts with suppliers or internal production processes.

These three elements could be said to be as important as the mission and vision of the company, and sometimes I would say that they are more critical at the moment of identifying the application of technology to generate productivity and competitiveness. What is the model of your business?

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