This week on NVTC’s Blog, Business Development, Marketing & Sales Vice Chair Jenny Couch of member company Providge Consulting shares potential benefits and risk factors of outsourcing your tech department.


Maintaining an in-house IT department is the right decision for many businesses, especially those where IT is a central, or critical aspect of the business.

But for many companies, maintaining an IT department that is fully equipped to tackle any IT need your company may encounter can be costly and inefficient.

outsource

Outsourcing certain functions of your IT department may deliver a number of benefits to your company. But, in assessing whether outsourcing is the right decision for your company, you should also consider the potential risks.

Let’s take a look at some of the potential benefits, and consider some risk factors of outsourcing your tech department.

The benefits…

  1. Accommodate shifting projects and priorities. IT needs fluctuate constantly. It may be difficult to shift full-time employees who were hired for a specific skill set around as your company’s IT needs change. By outsourcing, you can easily accommodate changes as your IT projects and priorities shift.
  2. Deploy resources where you need them, only for as long as you need them. Going through an operating system upgrade? Implementing a new ERP system? These are projects that will require a temporary increase in resources. Hiring full-time employees to fulfill short-term needs is expensive, and time consuming. Through outsourcing, resources can quickly be scaled up and down to accommodate project needs, or occasional increases in departmental workloads.
  3. Gain access to talented specialists. Certain IT functions, or software require support from highly-qualified specialists. These specialists often have years of experience, extensive training, and a hefty price tag. Bringing them on full-time is expensive. And that’s if you can even find such specialists in the first place. By relying on an external vendor who will either already have these specialists in-house, or experience recruiting these specialists you can drastically reduce the time and money involved in recruiting and retaining such specialists.
  4. Free up internal resources. Roles and responsibilities change over time sometimes for the better, sometimes for well, the not-so-better. Your IT team may have picked up responsibilities overtime they were never supposed to support, thereby neglecting their original scope of responsibility. By outsourcing certain functions, especially those functions that can be easily outsourced, your staff can gain back the critical time they need to perform their role effectively.
  5. Cost savings. Ultimately, when done right, outsourcing your IT needs, can significantly reduce you IT costs. If you’re able to better accommodate shifting projects and priorities, deploy resources where you need them for as long as you need them, gain access to talented specialists when needed, and free up your internal resources, you can reduce costs across the board, and improve the effectiveness of your overall IT department.

And now for the risks…

  1. Your vendor’s approach and plans may not align with your strategic plan. Are you planning to rely on an ERP system to support your back-office functionality? Is there a desire to move to the cloud now or in the future? What are your plans for scaling and growth? Before you consider outsourcing IT functions you need to have a thorough strategic plan laid out so you can understand where an outside vendor could provide support. If you simply start trying to outsource an IT function without considering your longer term plans, you run the risk of engaging a vendor that is not aligned with your strategic vision.
  2. Some IT functions can’t be easily outsourced. Some IT functions lend themselves naturally to outsourcing. Project management support, help desk support, etc. But other functions don’t fit so naturally with outsourcing. If you are considering outsourcing, it’s important to fully evaluate the ease with which you might be able to outsource the function, as well as whether you will easily realize benefits by outsourcing that particular function.
  3. Employee morale may drop. If you plan to cut current staff to accommodate a transition to outsourced tech support, you need to be prepared for decreased morale amongst remaining staff. Lay-offs are never easy, especially if cuts are occurring purely to save costs by outsourcing certain functions.
  4. You run the risk of “getting stuck”. One of the things we emphasize at Providge is documentation and training. We do this because, consultants, and consulting companies, by nature are a finite resource. Eventually, we will leave. The project will wrap up, or the additional support will no longer be needed. If the efforts undertaken by your consulting team during their engagement are not well documented, and/or no training has taken place with your team  you may find you have to continue to to unnecessarily rely upon your vendor. No documentation? No training? Get used to the extra bodies in the office.

Jenny Couch

This post was written by Jenny Couch. Couch is a project management consultant, and Providge’s Business Development Manager. She loves efficiency, to-do lists, and delivering projects on-time and on-budget.

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This week on NVTC’s blog, Jim McCarthy of member company AOC Key Solutions Jim McCarthy of member company AOC Key Solutions shares suggestions for not only surviving, but also thriving amidst the occasional dysfunction in government contracting.


When you win, government contracting is among the most satisfying of careers. Unfortunately, the crucible we call a Proposal Center can, at times, degenerate into a witches’ brew of dysfunction. One where there exists a dark confluence of long hours, suboptimal working conditions, relentless deadlines, hidden agendas, political infighting, rampant egos, intractable issues, morose review teams, cranky bosses, and cold pizza. No wonder proposals sometime magnify the worst in us. But, when handled correctly, dysfunction can also spark the finest in us. Here are suggestions for not only surviving, but thriving, amidst the occasional toxicity endemic to Government Contracting.

1. Be a Part of the Solution, Government Proposals are hard enough. Commit from day one not to be part of the problem. Be part of the solution—a breath of fresh air in the war room. Offer constructive suggestions.  Be a problem solver, not a problem compounder.

2. Regard It As an Opportunity to Learn. Get metaphysical. Discern why you are going through this time of adversity and testing. What lesson are you being taught? Be open.

3. Remember the Mission. Your company is bidding an important contract. By helping it win, you help your company help others. Take solace that you are part of something worthwhile that matters.

4. Focus on Positives, Not Negatives. Radiate enthusiasm. Don’t be a black hole absorbing all light and energy from the proposal. Count continuously the things going right.

5. Help a Colleague. Make it about others, not you. Volunteer. Help those sharing the foxhole with you. Look for another person—perhaps younger than you, and commit to making him or her a success. Helping others animates even the most grueling proposal.

6. Support Your Boss. Under pressure? Imagine what confronts your leader. Help ease the hard times squeezing the boss. Be loyal. Give the boss the benefit of the doubt. Speak highly of him or her.

7. Don’t Take It Personally. Problems are endemic to life, business, and proposals. Check your ego at the reception desk. Be objective rather than internalizing the dysfunction.

8. Examine Yourself First. Before playing the blame game, reflect on how you may be part of the problem. Anger, resentment, frustration, and finger-pointing are infectious. Often, we are most critical of others in the very areas where we are weakest.

9. Change What Is Under Your Control, Accept the Rest. Stress and worry contribute not one iota to solving anything. Fix what you can. Change how you think about everything else. Shifting one’s attitude typically brings about altered behavior.

10. Watch Your Mouth.  Don’t whine, gossip, backbite, nitpick, rumor monger, second-guess, engage in character assassination, question another’s motives, or utter any comments that erode the sense of the proposal team. Don’t pour gasoline on the fire. Bad karma in a proposal center eventually dooms your efforts.

11. Take the Pause That Refreshes. As you near a crescendo or breaking point, leave. Take a walk. Grab a cup of coffee. Sit in your car. Breathe. Use a quick break to center yourself. Once renewed, rejoin the fray and redouble your efforts.

12. Maintain Work Life Balance. You cannot perform your best when you feel your worst.  Diet, exercise, spirituality, family involvement, quiet time, hobbies, reading, healthy sleep habits—first take care of yourself. Only then are you equipped for the proposal grind.

13. Set a Good Example. People are watching you. You are either a good role model or a bad one.  It really does come down to the choice you make.

14. Sweat Not the Small Stuff. And, as author Richard Carlson says on occasions, “it’s all small stuff.”

15. Invoke Your Pressure Release Mechanism.  Tamp down on the valve to discharge steam when needed.  Keep your outlook positive, not pressurized. If you don’t have a release mechanism, find one.

16.  Act Gently and Cultivate Empathy. Never pile on. Don’t tread on those are already weighed down. Lighten another’s load. Observe your teammates, allies, critics, and rivals–you may think you know what they are going through, but you don’t. Like you, everyone is on a private journey with rocky patches. Everyone stumbles—if not today, then soon. Be an encourager.

By applying these suggestions, you emerge from adversity, stronger, more resilient, and better equipped to handle the next challenge. Surely, it will come—not if, but when.


Jim McCarthy is the Founder & Principal of AOC Key Solutions, a proposal consulting firm dedicated to helping companies win government contracts. Mr. McCarthy’s career spans over 30 years of proposal development, market strategy, and oral presentation coaching to federal contractors. Learn more at www.aockeysolutions.com

 

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