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Created by : Nikhil Jain, Senior Consultant, Hewitt Associates  | 05 16 2009 07:38:12 +0000
Industry : IT ServicesFunctional Area : Infrastructure(Technology)
Activity:  169 views;  last activity : 07 06 2010 20:18:09 +0000

The Remote Infrastructure Management space is getting a lot of coverage in the media, analysts and blogs. Most of the discussions is towards managing IT in the enterprises. My question is more to do with software product companies.
Does it make sense for a software product firm (Large or startups) to outsource the infrastructure and IT needs to an external vendor? OR would they be better off running their own IT ops?

Lets have disscussion on it.

 
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Absolutely, it makes sense for a software product company to outsource its infrastructure operations. I would say, that it goes one step beyond. If the product is a hosted service, then for example RIM can take care of all the infrastructure needs. The non-core infrastructure needs of a hosted product is core for a RIM service provider.

Don't you think so guys?


By Bhushan Patil, Project Lead, Birlasoft Limited  | 05 16 2009 07:47:35 +0000
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I think it make sense to outsource the infrastructure because of following reasons:-

1. For companies outsourcing makes there IT cost predictable and stable;
2. On short term it will give the outsourcer a cost benefit, because insourcers are willing to invest in customers;
3. For incoursers long term deal are strategical, because they increase the shareholders value;
4. In current economical times, companies are looking for cash. So selling your IT assests gives the opportunity to create more value on share holders capital. Because IT investments are cost centres and investment in other business activities are benefit centres.

But we also see that companies are starting to see, that outsourcing is making them less agile. Because innovation with IT is a lot of times under estimated. So do a lot of large enterprices end up with an statis environment.


By Nikhil Jain, Senior Consultant, Hewitt Associates  | 05 16 2009 07:38:12 +0000
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