Kick the outsourcing habit tip No. 5: Simplify your IT environment
Companies looking to insource IT will greatly improve their chances for success by streamlining their IT environments. Here, reliance on virtualization and cloud computing will help.
Enterprises can also attain a more internally manageable infrastructure by retiring legacy systems and applications. This greater simplicity alone will likely reduce your need for service providers to help with day-to-day IT functions.
Mott says GM underwent a data center transformation, including increased use of virtualization, as well as the retirement of some applications, prior to the company's decision to bring many IT functions back in-house. While the main goals of these efforts were to improve IT services and reduce costs, they've also led to a simpler IT environment that positions the company to bring more IT functions inside.
The IT transformation at GM will take several years to implement, Mott says. As part of the strategy, GM will cut its list of IT applications by at least 40 percent and shift to a more standardized platform. It will also move from 23 data centers worldwide to just two.
Not every company that's outsourcing IT is going to follow GM's lead and pull back in-house many of the technology services now being outsourced. But for many organizations, it might make sense to insource some functions currently under the domain of service providers -- and this might be the time.
If your organization is in that group, it's important to remember that changing sourcing strategies is no small deal -- particularly when it comes to IT components that affect nearly every facet of the business. Be sure to take the necessary steps that can help make the transition a success.
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