Benefits of IT Outsourcing

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Studies have found that lower overall cost is a popular reason for hiring an IT outsourcing company. The latest evidence of this comes from a survey from Nimsoft / EMA of medium and large size companies, senior managers and leaders. This investigation revealed that 41% of participants named “reduce cost” as the most important factor is selecting to partner with an IT outsourcing company. The majority of outsourcing contracts arise from the need to achieve a higher return on investment, so this result is not too strange. Some of the other 11 reasons listed on the report are described below.

1. Improve Technology

Technological performance influences the final result. Old obsolete programs and hardware limit the potential of any company. Knowing this, many it leaders opt to bring in an IT outsourcing company to provide an analysis of the current system. Many of these outsourcing services are conducted using the Information Technology Infrastructure Library (ITIL) guidelines that represent the leading document of best practices in the IT field. These international guidelines explain how to catalog, evaluate, and adjust IT systems for maximum efficiency and power.

You may ask yourself, why not have in-house staff apply ITIL standards? Well, it is certainly possible to carry out an ITIL in-house, but this route often poses problems of labor and productivity. IT outsourcing services can normally perform this task faster, since they have experience working with companies in different industries. In conjunction with in-depth research, this experience allows IT outsourcing services to understand what solutions work best for your particular situations.

2. Flexible Productivity

Although ITIL analysis is a key outsource offering specific projects are also welcome. If the system crashes or you need additional bodies to drive a rebound in labor, outsourcing services are ready to help make your organization more flexible and better able to take on additional projects. Finally, an IT outsourcing company can also develop custom applications to improve overall operations.

3. Improved Efficiency

Maintaining IT system can be a burden. Many organizations are perpetually responding to problems without the time and resources to plan and optimizing their organizational IT setting, outsourcing IT can often produce greater organizational efficiency.

Don’t pass up this benefit if you already have an in-house IT Department. In fact, IT workers often revel in the incorporation of an outsourcing company, since by doing so it allows them to focus largely on the strategic evolution of IT, rather than devote most of their time to putting out fires.

4. Focus on Key Objectives

IT outsourcing services can be quickly completed tasks that otherwise would have required many hours. In this way, the association with an IT outsourcing company can free your employees to tune into key business processes and objectives.

Improved of efficiency, enhanced technology, and greater flexibility are just some of the reasons why IT leaders consider collaborating with IT outsourcing services. However, for the majority of business leaders, decrease cost remains the number one motivation.

Juan Tobar, IT Manager

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Fiber or Coaxial

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Current and emerging technologies are requiring faster Internet connections that help users to run multimedia applications, VoIP, and other applications that cannot function properly without a high speed Internet connection.  As a result, there are many different types of Internet connections that have evolved since the initial dial-up access including fiber optic and cable Internet access. As the new IT Manager for LWDD one of the issues I am working on is evaluating our internet and network speed and considering all options for better and cheaper service.

Fiber or Cable not Fiber vs. Cable
When considering these two options the question you should be asking is what place do each of these products have in your organization. Which is better does not apply as the products are as different as apples and oranges.

With fiber you will get a dedicated switch and fiber from your ISPs node to your door. With cable you share fiber and have some length of cable from the curb to your door. For a detailed explanation of Comcast HSI (hybrid fiber-coax) network take a look at:

ATTACHMENT A: COMCAST CORPORATION DESCRIPTION OF CURRENT NETWORK MANAGEMENT PRACTICES

Currently, we have 4.5 Mbit data and 1.5 Mbit VOIP over 3 T1 fiber from a major service provider in our area for which we pay $1,500. Although speed test can vary from moment to moment  here are the results of some of our tests:

TEST DOWN UP
CableTest 2.7 2.2
CharterComm 1.44 0.45
SpeedOfMe 2.58 3.79
SpeedtestNET 1.85 4.06
VerizonTest 3.15 4.23
Average 2.34 2.95

We examined a number of other fiber-to-the-door ISPs and the costs were similar:

10 Mbit Fiber $1,000/month
20Mbit Fiber $1,200/month

Comcast Business Class advertises that its network can perform at rates of up to 100 Mbit down and 20 Mbit up at a cost of about $250/month. Here are the results of the speed test:

TEST DOWN UP
CableTest 12.5 2.5
CharterComm 48.18 18.96
SpeedOfMe 4.47 15.17
SpeedtestNET 44.39 13.44
VerizonTest 105.65 21.2
Average 43.04 14.25

As we can see the variability of fiber throughput both up and down is much more stable than the hybrid fiber-coax. However, on average we still get much more bang for the buck with Comcast Business Class. Comcast service varies greatly from area to area so this solution may not work for you but at these prices it is worth taking a look.

This does not eliminate our fiber connection as we need a backup in case Comcast goes down. Many fiber ISPs offer discounts for lines used as backup. In addition we will be exploring a simple DSL solution as backup.

Juan Tobar, IT Manager