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Outsourcing Dilemma WP
Outsourcing Dilemma WP
Outsourcing Dilemma WP
In evaluating the merits of IT outsourcing, companies not only need to consider a complex mix
of technical and business issues – they must also set aside the fear of losing control, which
is the most common obstacle to an objective evaluation. For decades, executives have been
conditioned to directly manage IT staff, procedures, and infrastructure. Yet, the benefits and
strategic implications of transcending this anxiety are enormous.
Thus, after a well-structured and objective assessment of outsourcing, the usual dilemma
is not whether to outsource, but with whom. IT outsourcing requires a partner that
understands the complexity of the outsourcing decision and has a proven approach to helping
companies achieve the full range of business benefits made possible by outsourcing.
This white paper provides executives critical considerations when examining the outsourcing
of information technology. It explores the primary business benefits of outsourcing value
and provides key criteria for vendor selection. Finally, it demonstrates that Verizon IT
possesses not only the experience and expertise, but also the best service model, to
serve as an ideal partner for any IT outsourcing engagement.
V E R I Z O N I N F O R M AT I O N T E C H N O L O G I E S L L C 1
Ten Benefits to Outsourcing Information Technology
2. Reduced IT overhead
Reducing or eliminating the costs of system and network administration, dedicated response capabilities and additional systemic
and process support can allow greater investment in such business-driving activities as customer acquisition, relationship
management, and manufacturing or distribution efforts. A recent IDC outsourcing study reveals that 12 surveyed companies
realized quantifiable business returns by reducing such IT facilities costs as floor-space, heating and air conditioning, power
consumption, reserve power capability (UPS), fire suppression, off-site archiving, and facility management.
Doing business in today’s "connected" marketplace involves convergent technologies that span many disciplines. It is an
unforgiving environment for those companies unable or unwilling to leverage technology with great efficiency and flexibility.
For a growing number of organizations, success will hinge on selecting the right outsourcing provider to manage a complex
and continually-evolving IT infrastructure.
V E R I Z O N I N F O R M AT I O N T E C H N O L O G I E S L L C 3
Critical Qualifications for IT Outsourcing Providers
When companies initiate an IT outsourcing strategy, good business practices mandate that enterprises consider service
providers that can demonstrate the following:
These six critical success factors provide insight into the types of questions companies should be asking of current and future
service providers for IT outsourcing. Each is equally important to the overall business impact and quality of services provided. Many
companies typically examine only a handful of quantifiable measures like return-on-investment (ROI), payback, internal rate-of-return
(IRR), return-on-assets (ROA), or economic value added (EVA) – and rightfully so, as these are important measurements for evaluation.
However, the most savvy and successful procurers of outsourcing services integrate the factors listed above into the vendor evaluation
analysis to ensure a successful outcome of the outsourcing relationship.
Elsewhere in this document we have reviewed the advantages of IT outsourcing and provided the key requirements to demand of an IT
services provider. These considerations form a strong and rational baseline for evaluating outsourcing as a business strategy.
However, to maximize the business impact of outsourcing, companies must look for vendor qualities that exceed the expected norm.
Such attributes as corporate culture, industry leadership and innovation, and commitment to customer objectives form the extra
dimension that defines the most successful outsourcing relationships. Verizon IT exemplifies how one organization can raise
the standards for an entire industry.
A. ISO-certified operations support – This includes the ongoing maintenance and monitoring activities required to ensure
that our customer’s system runs smoothly and efficiently. Our staff is on site around the clock to proactively monitor
system performance, and to diagnose and resolve issues. By using our ISO 9001:2000-certified procedures and highly
skilled technicians, Verizon IT provides customers everything from system monitoring to backup and recovery services.
B. Comprehensive technical support – This encompasses the functions necessary to support the operating environment in
a systems administration (break/fix) capacity. It includes engineering, hardware maintenance, operating system software
support, capacity and performance management, and system database software support.
C. End-to-end network support – Verizon IT is unique in that we can leverage Verizon’s world-class capabilities in network
communications to provide customers with end-to-end network solutions that are highly scalable and reliable. Our
staff is on site 24X7, and has extensive knowledge to deliver robust network solution options (e.g., Internet, VPN,
Frame Relay, ATM, DSL). Functions include everything from network infrastructure planning and engineering, to
monitoring, performance management, and reporting.
D. Hardened data center environment – Verizon IT has access to world-class data centers (strategically located across the
country) which are protected from power outages and hardened against natural disasters. Business continuity features
include redundancy for power, and telecommunication connections.
E. Tri-Level security service – Our approach ensures that all customer applications operate in a safe and reliable environment by
covering three areas of security: Physical, data, and network.
F. Applications infrastructure service – For key enterprise applications such as CRM (Customer Relationship Management),
SCM (Supply Chain Management), ERP (Enterprise Resource Planning), and KM (Knowledge Management), Verizon IT
provides hosting, management, and maintenance, as well as full deployment capabilities through key strategic partnerships.
G. Enterprise help desk services – For enterprise environments, we provide a comprehensive range of help desk services,
including network access, software installations, and systems availability and operations.
V E R I Z O N I N F O R M AT I O N T E C H N O L O G I E S L L C 5
Verizon Information Technologies LLC
One East Telecom Parkway
Temple Terrace, Florida 33637
Verizon.com/IT