Outsourcing is a method of business operation undertaken by many of the most successful company's in the world today. In fact, some organisations employ a 100% outsourcing policy. Nike are one such brand - effectively meaning Nike do not actually make any shoes or clothing. All production is outsourced to factories across the globe. Even aspects of design are outsourced. Nike own the famous 'swoosh', and so also own the rights to any material containing their brand identity. This is a highly efficient form of operation, as Nike do not have to worry about the ownership and/or operation of any production facilities.
Of course this form of 100% outsourcing does not benefit all businesses, particularly those with a keen interest in the provision of services. McDonalds, for example, outsource much of there food production to localised farms and processing plants. However, products are manufactured to strict guidelines, with McDonalds then taking control of every further aspect of operation from logistics and preparation right through to sales.
It is highly unlikely that McDonalds would be as large and successful as they are today without reliance on farmers and farming experts to produce the livestock required to fulfill the demand created by its customers. Without outsourcing such areas of production, McDonalds would have to invest billions of dollars in its own farms, as well as the training and resources required to run said farms. It is far more efficient to outsource this aspect of their supply chain to those businesses already proving a success in the field. Even if you are not a fan of McDonalds as a brand, and/or its products, you should well appreciate how effectively they make use of outsourcing in their own success.
How does this translate to the rest of the business world? Well, its very important to look at the benefits gained from outsourcing certain operations. Although handing away total control can seem daunting, it can have enormous cost-saving prowess, as well as the ability to build a better product/service on the back of another parties expertise.
Almost every firm today utilises some form of information technology, be that a single computer right up to entire comms' rooms full of servers. Yet the truth of the matter is that many business do not have the required knowledge to make the most of this technology. This will often lead to the formation of an IT department within the organisation, which drastically increases staff costs and can make the running of this technology spiral into an expensive financial blackhole.
Many businesses now outsource all of their IT needs, generally with a central IT firm who manage the needs of a number of businesses. This works to a certain degree, but with the technology still housed on the businesses own premised, lead times on remedies can be unacceptable. Distancing the technology from those in posession of the right knowledge regarding how it is operated can prove inefficient.
An entire IT outsourcing plan is likely the best option, especially in todays world of high-speed online connectivity. Dedicated servers and colocation services allow firms to move their business-critical technology out to experts with all the tools and knowledge required to ensure it is running smoothly 24x7. It has never been easier to make this switch, with many affordable solutions on offer here in the UK; with the ever progressing speed of the internet meaning remote access from your business is just as simple as having the machines in-house.
Netwise Hosting offer a range of highly competitive dedicated server packages, colocation services and online backup solutions, perfect for starting your technology outsourcing strategy today. Work with a member of the Netwise Hosting team for a truely tailored solution, and enjoy complete peace of mind - concentrating your efforts on more important core activities. Contact us for a free comprehensive information pack.