What is outsourcing?
Outsourcing is a process by which an organisation sub-contract certain functions or processes within a business to a specialist, third party, company.
Many organisations, and to some extent people with computers at home, already outsource the support function, for example where the manufacturer of their PC will fix the machine should it ever fail. Likewise with software applications, there are many support companies that will charge per minute over the phone or as needs require.
Why do I need it?
You and your organisation will need some form of support for your IT operations and the more complex the technology and the more reliant a company is upon that technology in order to function, the greater the need to have support.
It can be a good idea for an organisation to focus on core business areas rather than areas that are not within the capability of personnel within that company. IT outsourcing also means that the organisation can expect high levels of service as well as the benefit of extremely skilled personnel on a full time or ad hoc basis.
I have some people within my company look after IT. What will happen if I decide to outsource that function?
There are a number of legal issues that need be considered when outsourcing especially when it comes to personnel and their contracts of employment and their legal rights. This is dealt with by a piece of legislation entitled Transfer of Undertakings (Protection of Employment) Regulations 2006 or TUPE as it commonly known.
In summary TUPE ensures that:
- Employees are not dismissed before or after any outsourcing agreement is in place. This means that IT outsourcing can not be used as an excuse to make personnel redundant.
- Employees are informed and represented throughout the process
- Employees rights are not affected by the outsource agreement i.e. their salaries and packages must not be worse. This includes pensions and pension rights, holidays etc. In essence, employees’ terms and conditions must remain the same
If these regulations are ignored to, and an employee is sacked as a result of the agreement, then this will be regarded as unfair dismissal and the company may be held legally liable.
How do I know that the company I outsource my IT function to will provide a better service?
This is part of the buying process or due diligence. You should have met at least three potential service providers, considered their proposals and spoken with a couple of their customers.
How do I ensure that they continue to deliver a good service?
It is important that you know what your objectives for IT outsourcing are and have an SLA in place in order to ensure that the service levels remain high.
What is an SLA?
A Service Level Agreement (or SLA) provides a framework or structure outlining the objectives that both customer and services provider agree to deliver. In broad terms, this may be that the IT outsourcing company must provide a response to an issue within a fixed time, have a process for problem management, resolution and performance measurement. The SLA is also a list of services and objectives that the IT outsourcing company agrees to deliver.