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Why an Outsourced CIO Would Benefit Your Company
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Why an Outsourced CIO Would Benefit Your Company
Presented By
Black Pearl Matrix
5 Reasons to Outsource Your Company's IT Team
- Focus on your core business
- Expense savings
- Flexibility in solutions
- Qualified professionals
- Customer satisfaction
Is it really worth outsourcing an IT area? Why did this alternative become a strategic decision? Find out in this article!
In recent years, the area of high information technology has ceased to be just an infrastructure sector and has become a strategic department.
Within the current context of digital transformation, organizations are looking for alternatives to achieve technologies in the best possible way in their business models. As a result, many companies are considering IT outsourcing.
However, there is a doubt that makes many think if leaders are really worth it in outsourcing IT services. Therefore, our objective with this content is to show how outsourcing can help your company to make information technology more strategic, generating benefits.
Do you want to better understand this alternative that institutions are taking? Then keep reading!
IT Outsourcing: A Strategic Decision
The information technology area has three main roles in a company:
• Manage the business
• Create
• Innovate
Nowadays, IT needs to be present in your company. Just look at how banks, telecommunications companies and retail brands already include technology as a basis for operating models and their relationship with consumers. Currently, even mining, for example, is turning companies digital.
The value of the information, service or solution ends up being a fundamental component in the delivery that the company is making to the market. This is the background. As they are transforming into a digital business, IT naturally must position itself more strategically.
But operating IT internally causes executives to lose business, which is the first and many daily tasks of IT.
By outsourcing an operational routine, the company’s outsourced employees are able to strategically generate more time, generating innovation, being the second and third functions of IT leaders, with a focus on business expansion.
Therefore, the idea is to outsource the more “manual” part, in which you cannot “automate” and facilitate the process, after all, that is where the company spends a lot of resources. With that, you gain space to use information technology in a disruptive way, reaping much more fruit.
Check the challenges of the CIO in their professional work before hiring
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1. Information security
At a time when our employees are increasingly exposed to phishing, malware and other threats, ensuring the security of information stored in a shared IT environment is one of the CIO’s greatest challenges.
Likewise, maintaining a database management routine with all the necessary precautions to ensure information security, and combining these actions with other attributions of IT managers is not a simple task.
Therefore, maintaining support mechanisms to automate or even outsource these tasks is an excellent alternative to face this CIO challenge. By the way, if you need help with database management click here.
2. Ensure performance proportional to the company's growth
The performance of the IT sector has a direct impact on the productivity of the company and its entire workforce. Therefore, its growth can be directly related to how solid and high the performance of its IT environment is.
Ensuring that the performance of the IT infrastructure and the database is not an impediment to the growth of a company is fundamental and one of the biggest challenges of the modern CIO in a corporate environment.
3. Incorporate innovations
With technology invading companies more and more, the growth of these companies depends directly on the power of their IT sector.
By constantly adopting new technologies that remodel the organization of companies, it is a challenge for the CIO to maintain the reduction of operating costs in the face of technologies such as Big Data and Cloud Computing.
There is also the constant challenge of maintaining the development of employees. Updating is part of IT professionals’ routine to fill in the constant knowledge gaps in an area in constant development.
4. Ensure mobility safely
Every device that accesses your company’s database can pose a threat to your IT environment. In this list, we include corporate smartphones, tablets and iPads, notebooks and computers
They are the gateway to unauthorized access, threats and even information leaks.
Now, 4 Reasons to Bet on IT Outsourcing
1. Cost reduction
Every company that seeks operational must reduce costs even if a leader of an IT team is a hot topic, what we look for most in times of crisis are solutions that bring cost reduction, right?
IT outsourcing can provide this, as you can count on a partner that has scale and at the same time is an expert in what they are doing.
In addition to reducing expenses (in relation to the investment required to maintain a team), the decision to delegate invest more time in what is strategic for your business.
Another important point is that there will always be the possibility of negotiation to reduce costs with the supplier.
This is something that, even in times of crisis, would be impossible with an FLSA contract worker. That is, instead of having to sacrifice workers or cash flow, the manager has a solution that balances the company.
2. Commitment to return on investment
Today, IT companies no longer treat their contractors as customers, but as partners. After all, the information technology specialist is a decisive agent in the digital transformation of organizations.
As a result, one of the goals of the IT company becomes the profitability of the partner’s business. This supplier understands that, for a partnership to work, it is necessary to bring solutions that reduce costs and guarantee the return on the investment made.
Therefore, before closing any deal, ask how the supplier in question intends to measure the ROI (Return on Investment) of the projects they will develop together.
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3. Service Quality
As the IT partner’s core business is precisely information technology, it is natural that the quality of work is high. Also, one of the strengths of technology companies is that they tend to be very methodical and organized.
In practice, this means that you will have documented service processes.
4. Virtual CIO or vCIO
Have you heard of Virtual CIO? It is possible to say that due to digital transformations, positions such as Chief Information Officer (CIO) are adapting to virtual functions, as companies around the world need to adapt to new demands.
The Virtual CIO (vCIO) is an IT Director who performs his role online and remotely in an enterprise. It can work as a solution for organizations that do not have a large structure and require the hiring of a full-time CIO.
According to data from the CIO Study 2021 survey, the role of CIOs is becoming increasingly important due to technological advancement.
Around 90% of these professionals were able to implement a remote work strategy. In addition, according to the study, 40% of Information Technology Heads realized that they could carry out their work virtually.
In this way, it is possible to say that in the world of Information Technology, this craft has been gaining space and is already an increasingly common reality.
We can define that the vCIO performs these functions:
• Can act as Chief Information Officer in remote companies;
• Consultancy related to the infrastructure, management and productivity of the Information Technology sector;
• Solid cybersecurity solutions;
• Establish strategies to identify ROI in the IT area;
• Alignment and evaluation of the team’s skills;
• Strategically support the relationship with suppliers.
Finally, this professional can help with IT strategy, working to understand the company’s technological needs, but their roles can vary according to the needs of the business.
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FAQ – Frequently Asked Questions About Outsourcing to a CIO
1. Which form of contract should I use?
2. What role does a CIO play?
3. What cost benefit should I look for when hiring a CIO?
4. What are the benefits of having a CIO or vCIO?
5. What characteristics define a good CIO?
Conclusion
This profession is spreading more and more in the world. In the United States, the Information Technology Directors themselves realized that they could carry out their function remotely.
In addition, we saw that it can be advantageous for small and medium-sized companies to add this professional to the team.
Some of the reasons are cost-effectiveness, availability, optimizing IT in the enterprise, productivity and providing strategic advice.
In this sense, it became clear that this function is important to support the IT area in companies.
Their roles as consultants provide IT strategy expertise in the business to help the corporation achieve its goals.
Thus, it is possible to say that hiring this specialist is a very assertive choice, especially when the company is small/medium in size and needs a professional with experience and technical knowledge.
Now that you understand how a virtual CIO can help your company progress, get in touch with quote company and get the best service for your business!
The cost-effectiveness of hiring a vCIO is one of the biggest benefits for a small business that can’t afford to spend a lot.
Although reducing costs with this professional is what makes the customer’s eyes shine, hiring this professional can have some other advantages.
It is common for the vCIO to work by the hour and with on-demand service, making the cost variable. The company requests this professional as needed for consultations and troubleshooting in the technology area.
While the virtual CIO functions similarly to a full CIO, it has a more advisory character within an organization.
Its function is carried out remotely, offering online assistance for the operation of the entire IT infrastructure of the company.
Finally, this professional can help with IT strategy, working to understand the company’s technological needs, but their roles can vary according to the needs of the business.
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