Managers looking for new ways to remain competitive, and quickly integrate emerging technologies into their businesses are finding that more than 1/3 of the total cost of ownership (TCO) for computers and computer systems can be traced back to the end user. As a result, more and more companies are realizing the need for user level desktop support and are turning towards the salvation of outsourced user support services as well as server level support services. Because of this, the outsourcing trend for network and user support technology services has accelerated.
The Gartner Group recently reported that the average annual cost of ownership for a desktop computer operating Windows 98 in a business environment is $9,784. This estimate includes life-cycle capital costs of hardware and software, including upgrades; technical and administrative support costs; and the cost of users’ time spent learning about, troubleshooting, and maintaining their PCs. Companies that utilize IT outsourcing experience rapid access to new technologies and skill sets, better responsiveness to changing conditions, faster IT cycle times and a reduction in this overall TCO.
Fueled by businesses growing reliance on the Internet and technology in general, outsourcing computer related services, once a fading business practice, is making a comeback. Outsourcing partners are playing an increasing role in directing their customers’ business technology operations. Years ago, companies that had been outsourcing aspects of their computer network and technology operations had chosen to end their contracts and bring these “IT” functions back in-house. They thought it would help them re-gain control of budgets and speed implementation of technology dependent projects, but things don’t always work out like we plan.
In all of this confusion the real losers have been the workers at companies needing basic desktop level support and training. Skill sets of workers can many times falls short of what is needed to perform efficiently in today’s ever-changing technology landscape. There is increasing pressure for employees and companies to master the day to day use of technology, and consequently a growing increase in reliance on outsourcing to help them stay ahead of the network and Internet computing curve. Companies fortunate enough to have an in-house MIS staff find that there simply aren’t enough hours in the day to manage networks at the server level and make time for coaching administrative personnel through the more in-depth nuances (macros, shortcuts, task management performance issues etc.) of desktop applications such as Word, Excel, Access and Lotus Notes, which directly impacts productivity.
Today, user support has become a strategic weapon in the profitable business model. Even though a worker claims to know office application suites & basic business desktop applications, productivity is affected without adequate user level support to maintain the standard. Some people have just gotten used to viruses, rebooting their computers 5 and 6 times a day rather than bug the “Computer Guy” with it or manually executing form letters and other repetitive tasks versus performing a Mail Merge or programming a Macro. In the late 80’s and early 90’s companies spent millions analyzing worker performance down to the keystroke in an effort to maximize worker productivity. In the expanding information age, outsourcing support services at both the desktop and server level are part of what it takes to remain competitive and survive in this tech based society.
Since many companies are not comfortable giving up total control of their network and web operations, outsourcing supplemental desktop support or higher-level network tasks may be the answer. Forrester Research predicts that the demand for application hosting services alone will grow to $50 billion by 2002. This is reflective of the outsource trend and mentality, “get the problems out of here, make them someone else’s”
As technology moves from gigabytes to terabytes & dial ups to fiber optics, businesses are realizing the need for and value of combining their internal expertise with that offered by an outsourcing partner. And it is safe to say, with growing reliance on technology as a business tool, the demand for outsourced MIS services will only increase. When utilized properly outsourcing can mean the difference between staying ahead or falling behind your competition.
Kevin Watne is President & CEO of Generation IX Technologies.
