Outsourcing is often viewed as involving the contracting out of a business or service functions - commonly one previously performed in-house within business unit - to an external provider. In this sense, two organizations may enter into a contractual agreement involving an exchange of services and payments. Information technology (IT) systems are expected to meet high standards of operation and processing integrity, while offering round-the clock availability, security, and good performance. In today’s environment, organizations must deal with rapid and regular changes in IT, the performance demands of the e-economy, and pressure to deliver competitive IT functionality. To meet these challenges, organizations are increasingly considering outsourcing of their information systems activities as an attractive option. In fact, many organizations already use outsourcing in one form or another.

Our outsourcing methodologies allow companies to focus on other business issues while having the details taken care of by Primainfo. This means that a large amount of resources and attention, which might fall on the shoulders of management professionals, can be used for more important, broader issues within the company. Management can decide to outsource IT services for several reasons. The most important reasons for reaching such decisions involve the operational, technological and financial benefits to be derived.

Operational benefit

Despite the pervasive presence of IT in modern business, the operation of increasingly sophisticated data processing environments is often not a core competency for many organizations. The need to improve service quality, attract and retain competent IT personnel, and develop and maintain robust systems can severely strain management’s resources and reduce the effort devoted to the real business value drivers of the organization. The operational benefits of outsourcing, then, support achieving business value by transferring service delivery of IT activities to a “specialist,” thereby allowing management to focus on the organization’s core activities. By minimizing the resources devoted to non-core activities, a business might be able to improve its performance through restructuring or reengineering business processes.

Technological Benefits

Achieving IT efficiencies may be an organization’s major expectation from outsourcing. By outsourcing, an organization may have access to people, processes and technology that it might not otherwise economically obtain. Outsourcing often provides access to advanced technology that can result in distinct technical leadership. It can be a way of keeping up to date with changing technology and gaining access to IT expertise and, through this, improving the quality of IT services delivered to the business and to customers.

Financial Benefits

An important benefit often sought by management in IT outsourcing decisions is financial in nature. Outsourcing offers the possibility of bringing IT costs under control through the efficiencies that might be delivered by Primainfo or the sharing of common costs among our customer base. In addition, outsourcing can reduce the risk of investing in the wrong technology or significantly limit the required capital investment, making financial resources available for more strategic activities. Manpower transition to new entity is also of the strong cost cutting factor for most companies.