To insource, or to oursource?


The more time I spend working with businesses of different sizes, the more I have come to realise that there are some distinct advantages to having either an internal IT resource, or an external IT resource.

What has become even more apparent, is the gaps that are created when choosing either one or the other, or the disadvantages to selecting one or the other.

So, let’s break it down.

Internal IT Resource Advantages

  • They’re at your disposal – Ask and you (should) receive
  • They know ONLY your systems
  • They understand the business, its people, its processes, and its strategy
  • You can ask them to do anything, and if they can’t do it, they can spend time learning how to
  • They are a fixed, budgeted cost

External IT Resource Advantages

  • Broader technology skills base through personnel set
  • Bring objective discussion to the table
  • Larger resource pool to facilitate technology support needs
  • Choice. You aren’t necessarily stuck with them, particularly if they can’t deliver
  • They are scalable, and can accommodate growth needs

Internal IT Resource Disadvantages

  • Technology knowledge often limited to the systems they work on (Ie, your systems)
  • Limited external influence reduces access to innovation opportunity
  • They’re often entrenched doing support, not improving technology systems
  • They’ll take leave, and often don’t have resource coverage
  • They’re on wages… And hit the bottom of the P/L
  • You’re stuck with them, and they can’t scale with growth

External IT Resource Disadvantages

  • Limited to what you pay them for ONLY… More work = More cost
  • They don’t KNOW your systems as well as an internal resource
  • General IT providers don’t understand your business, processes or strategy
  • They’re not “there”, and can’t understand what happens on the ground
  • They will push you towards systems they want to sell you, they are a business too!

Now, where does that leave us?

Do you need to have one or the other, or, can we take the advice of the young girl in the Old El Paso advertisement?

At ServiceScaler, we believe you can have your cake, and eat it too.

For organisations that HAVE an internal IT resource, we would recommend that you outsource your “low value” support work to an external IT provider. They have systems that will automate the proactive monitoring, maintenance and patching of your systems, and provide reporting on how the infrastructure is going. They will also provide you with a diverse skillset through their resource pool and give the availability and coverage for reactive support requirements your organisation will need. Your internal IT resource can then focus on proactive work like internal projects or initiatives and developing internal systems for better operational performance. They understand the (often transient) businesses challenges and objectives at a day-to-day level and can make high-value contributions in the execution of this type of work.

ServiceScaler can provide outsourced managed services IT and remove this burden from your organisation.

But for organisations that DON’T have an Internal IT Resource, where does this leave you?

In assessing the disadvantages for external IT resourcing, we can see that the challenge often lies in the fact they are not inherently objective in their recommendations to you, and they often don’t understand your business being a general services provider.

Are we suggesting you should bring in an internal IT resource?

Well, no, not explicitly. It wouldn’t be feasible for many businesses to consider this as they do not have the demand for a resource of this type to justify the expense.

To overcome this challenge, ServiceScaler have been offering our senior technology consulting resources through our consulting practice to provide that “internal resource” feel, without committing to a full-time resource.

Our consultants can provide objective advice and suggestion on technology direction, assist to develop internal systems, and work exclusively with legal practices, meaning they understand your business and its requirements. As they are committed to you, they will learn and understand your business, processes and people to consistently contribute high value input and deliverables to your organisation.

So have your cake and eat it too people, because cake is delicious!

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