The following is a post by Jeff Huckaby of RackAID, who will be presenting at HostingCon 2010 on Monday, July 19th at 10:00AM.
“Outsourcing.” In hosting business, “Outsourcing” could be the eighth addition to George Carlin’s “Seven Words You Can Never Say on Television.” People gleefully recant outsourcing horrors while those who outsource keep their lips sealed. However, by digging under the chatter, you unearth a dirty little secret. Many companies outsource with tremendous success, and by doing so, they are more profitable, grow faster and deliver a higher level of service than their peers.
When I look at our most successful clients, I find they share a common theme: They’ve identified the core value they deliver to their customers and they focus on it. Everything else, including very important IT operations, can be outsourced.
While each client’s story is unique, here are 3 ways I’ve seen companies benefit from outsourcing their IT operations. These companies have stabilized their operations, optimized their services, and profited from outsourcing. Perhaps you can benefit too.
Sharpened Focus
To outsource, you must understand the core value you deliver to your client. Unless hosting is your core offering, I doubt that the clients came to you for hosting. Perhaps you offer web development, web design, marketing or a great SaaS application. Though services like these depend significantly on good IT service management, they are not the value you deliver.
By identifying portions of your IT service portfolio you can outsource, you can sharpen your focus in areas critical to your business.
Increase Productivity
This one is simple. If IT service issues are preventing your staff from getting their work done, then outsourcing can boost productivity. If you are delivering professional services, such as graphics designer or web programming, you may see increased revenues as staff focus on billable projects instead of waiting for services to return to normal.
By outsourcing low priority tasks, your staff can focus on high value, revenue-generating activities that impact the bottom line.
Gain Expertise
Sure, Ginger Joe may be able to fix-up that server for you, but does he do it professionally? Does he have time to keep abreast of the latest technologies? If you are saddling some guy in the corner with your IT management tasks, you may not be leveraging new technologies to the fullest. As a result, service reliability, security and capabilities suffer.
Outsourcing is a quick and easy way to gain immediate expertise to help you leverage the latest technology to get the most from your IT budget.
About Jeff Huckaby
Jeff Huckaby is the founder and CEO of rackAID, a managed service provider based in Jacksonville, FL. Before founding rackAID, Huckaby worked in academia, where he used Linux-systems to model genetic systems while attending Yale University. In 1998, we founded BioMedical Computer Consulting (BMCC) to help medial non-profits leverage emerging internet technologies for fundraising and educational purposes. After BMCC, Huckaby founded rackAID to make advanced IT services accessible and easy for small business owners. He remembers discussing the concept of HostingCon with the conference’s founders over beers at a RackShack party nearly a decade ago.
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