Majestic CEO Tal Evans highlights the pros and cons of an Organisation having their own internal IT team.
An organisation with its own internal IT staff has a reduced pool of knowledge with which to trade, borrow and acquire ideas from. Having a managed services provider like Majestic on the team deepens that pool considerably.
Organisations who haven’t experienced various modes of technology delivery will often have an internal IT team. It’s the common starting point for most businesses and it does have some advantages – the main one being a perceived lower cost of delivering a service.
An internal IT team gives you permanent access to salaried staff that are accessible to you all day. They deliver the required outcomes, they keep everything running, they do preventative maintenance, they know how the organisation works and behaves and they build relationships within the organisation.
On the negative side, however, is that those people tend not to have the skills, or resources required to deliver a strategic plan or outcome for their organisation’s IT management. They don’t know how to facilitate conversations around driving an investment in technology and how to create and execute a plan that has an emphasis on the organization’s maturity, the goals of the organisation, where it wants to head to and how to drive those objectives forward.
As a result, we often see organisations making poor technology investments.
Research from IBISWorld shows revenue in the business process outsourcing (BPO) industry is predicted to grow year on year over the next 5 years. Does your organisation use outsourcing a part of its ongoing strategy?
Forbes’ article ‘The Pros and Cons of Outsourcing’ discusses the key aspects organisations should consider when making a decision on whether to have an internal, external or blended team.
The pros include the access to a larger talent pool that we discussed earlier this week, the typically lower labour cost.The cons cited a lack of control, communication issues, problems with quality and impact on company culture. Although these are risks that need to be addressed, Majestic has many years of experience in doing so, using systems and processes that mitigate such risks.