Sun Focus Special

IT Outsourcing: Are You on the Right Path?

IT goals are changing. Automating processes, providing access to information, and enabling improved decision-making are no longer enough. And while IT departments must deliver these capabilities, companies are focused on strategic business concerns for which there is one common measure for success: the bottom line.

Consequently, IT departments are finding themselves under increasing pressure to manage complex heterogeneous IT environments with ever-tightening budgets and dwindling resources. Dealing with these challenges in-house may threaten businesses' ability to focus on core skills, leading some to turn to IT sourcing.

Companies shouldn't view IT sourcing as a black-and-white issue: They don't have to choose between outsourcing everything or keeping all of their services in house. Sun's approach analyzes the pros and cons of outsourcing and multisourcing, and works with the company to ensure they maintain control.

Is Outsourcing a Dirty Word?

In traditional outsourcing arrangements, companies transfer ownership of assets and human resources to a single external service provider (ESP) to deliver all of their IT services. And while outsourcing works for some companies, others fear the associated loss of control and high exit barriers. Businesses use ESPs so they can focus on core skills, improve IT services, control costs, or bring in specific expertise. But some companies find they're better at delivering their IT services and that outsourcing doesn't result in cost savings.

Ultimately, outsourcing isn't a dirty word. But it isn't the right solution for all companies all the time. Different approaches work for different businesses, and the right solution may change as organizations evolve. Many companies benefit from an approach that leverages the competencies and inherent cost advantages of both internal IT resources and outside vendors.

Multisourcing relies on multiple service providers and delivers many of the benefits of outsourcing, including access to the latest technology and skills, the ability to focus on core competencies, and the potential to enhance business agility and cost-effectiveness. But unlike outsourcing, multisourcing offers businesses the ability to pick and choose what to outsource and what to keep in-house. It also lets businesses select the best supplier for each service. While this approach allows businesses to retain control over their IT direction, it can also result in heavy management overhead.

Delivering Flexibility and Control

So how can you avoid the loss of control associated with outsourcing and eliminate the management burden that sometimes comes with traditional multisourcing? Sun Managed Services is a flexible multisourcing model, in which Sun, partners, and the customer deliver IT functions in their areas of expertise with a lead company managing the overall service delivery.

Built on the principles of flexibility and choice, Sun Managed Services doesn't confine businesses to a defined set of options. Overall service delivery can be managed by Sun, a partner, or the customer. And no matter which option customers choose, they maintain control of their IT strategy and determine how to manage assets and human resources.

You can learn more about Sun Managed Services at Sun's Web site.