Fractional IT Outsourcing

As any technology executive can attest, outsourcing is now commonplace. Choosing which client projects to outsource and which to retain in house is often choosing between two different calculated risks.

An often overlooked side of outsourcing isn’t specific to a project, but the internal IT management of a company. Fractional IT outsourcing provides a custom approach and still allows for you to maintain a core IT department. Read on to find out if these qualifiers ring true for you and your organization and if Fractional IT outsourcing is of benefit.

Outsourcing to Retain Focus & Boost Morale

Often, the internal IT department is overlooked and can quickly become the Milton of the organization. Somewhat forgotten until a crisis occurs, IT employees can often feel disconnected to the organization.

A company is built on values and maintains a culture, sometimes it’s one where everyone fits but the IT department. You may have noticed your IT employees are dwindling in numbers, and it’s not just for your organization. IT is in high demand; if employees don’t feel appreciated they can find a better job elsewhere. Check the employee turnover rate and ask the recruiting team. If they are spending 50% or more of their effort attempting to fill positions for 5% of the company, the IT department, it could be time to consider fractional outsourcing.

Outsourcing to Reduce Overhead

We seldom think of paying another company to handle an aspect of our business as a cost reduction. It’s psychological to believe outsourcing is a higher cost, often it’s not. There is an army of companies that can do what you do better. There are entire companies built on outsourcing as much as possible. For example, Coca-Cola only creates flavored sugar-water syrup, the rest is outsourced including bottling, mixing, delivery, even marketing. Decide what is your company’s flavored syrup and the rest of the business can be available to outsource.

If your business plan and culture is built around employees billing clients, keeping an internal IT department is counter intuitive. Remember, there is someone that can do what you do better, especially the things that aren’t necessary to your business. Fractional outsourcing provides a third party organization that doesn’t suck up benefits, morale, and often has applicable knowledge of the latest industry insights. It can be onshore, yet many IT consulting firms also offer offshore options, significantly decreasing the overhead cost to your organization. Fractional outsourcing allows for flexibility and additional help only when you need it.

Outsourcing to Increase Performance

IT departments are seldom overstaffed in 2014. High turnover, better jobs and many other factors typically prevent a balance of employees to work. You’re growing which is great, but your IT department isn’t and as a result the performance is affected. This is only one of the many issues with keeping an internal IT department; it’s costly to hire more full time employees. Often, the day to day work can’t justify another overhead employee, yet when a crisis hits, you feel the squeeze. If you often receive an expected time for resolution to an IT crisis, and the time is consistently pushed back, it may be time to consider outsourcing.

Fractional Outsourcing IT can allow for a more flexible and scalable team. When a crisis hits or all of your sales deals get signed in a month, you can have the confidence of having an IT team that is able to align its size and skill with your needs. Great skill is often exhibited in companies where it’s their focus. For an IT consulting company, paid industry conferences, mandatory certifications, exposure to a diversity of client problems, and constant employee learning and networking directly improves their IT performance over an internal department. Fractional outsourcing of IT will increase performance, reduce overhead and retain company focus.