IT Outsourcing came to foray as a means for corporations to focus on critical business operations while having a specialized IT company take over the responsibility of managing the IT infrastructure and application development. For corporations especially in the developed countries, IT outsourcing provided two fold advantages, one was access to a highly talented pool of engineers and that too at a lower cost since countries like India were quickly growing their stature as an IT outsourcing hub.

IT Outsourcing is now as mainstream as ever and almost every leading organization outsources some or all parts of its IT infrastructure to a specialized company. It makes pure business sense and with tightening budget controls, IT outsourcing has become one of the strategic cost reduction driver for most organizations. Moreover, IT outsourcing is no more restricted to companies in USA & Europe outsourcing their IT projects to countries like India. Domestic companies within India itself actively use IT outsourcing including the Indian government like the India Post project given to TCS.

Is it then a no brainer that IT Outsourcing is critical to your business? Well, if it is cheaper and does not seem to have any inherent disadvantages why not!! Not really, IT Outsourcing despite proven benefits has its limitations and you should be cognizant be of the same before considering outsourcing your IT operations.

·         Limitations in estimating the actual cost of IT outsourcing:Let’s tackle the biggest driver of IT Outsourcing-Cost Savings. For anyone to estimate the cost savings from IT Outsourcing one needs to be able to predict the cost of outsourcing which then helps understand the cost savings from the same. Yes, at a higher level it is a matter of a simple $ per man-hour costs and IT outsourcing will appear to be cheaper in almost all cases. However, “hidden costs” are commonplace with IT outsourcing and it can be immensely difficult to accurately predict these hidden costs. For example, you need to be able to identify the costs of transitioning your in-house IT to an outsourcer, management overhead needed to manage the outsourcing relationship etc. In addition, IT outsourcing contracts are fixed at the start of the contract and as a result any additional requirement/change tends to be charged additionally. It is no surprise that IT requirements can change frequently and if your outsourcing contract doesn’t account for flexibility, you might be limited in the actual cost savings you might make. There is no surprise that there have been so many instances of IT outsourcing projects overshooting their budgets by a huge margin such as the one government shared services project going 500 million pounds over budget

Smart Project Management –Best Practices of Good Managers

Project management could be one of the easiest jobs on the planet, and could also be the worst nightmare. The difference between the two extremes depends on smart management of a project. According to the project management institute, there are five phases in project management - Initiating, Planning, Executing, Monitoring & Controlling, and Closing.

Every manager has his own style of project management. But there are a lot of contributing factors that result in a successfully managed project. These factors vary from project to project, but they all contain some common elements.

1. Setting SMART Goals

The line between IT consulting and management consulting is quite often blurred, with overlaps between the two fields habitually happening. Worse still, most people do not understand who an IT consultant really is, or what he/she does. There are those who think the job entails fixing computers, others – selling computers and associated accessories. This is misleading though.

In a nutshell, IT consultants are professionals who aid businesses in deciding what computer tools and technologies are best placed to grow and sustain a profitable business. They work hand in hand with clients to help integrate IT systems into the latter’s business. They show clients how to use technology more efficiently, and in so doing, the client is able to get a higher return on their technology investments, and ultimately, increase the bottom-line.

IT consultants, or IT advisories, could work independently or for a consulting firm, with their clientele spread across all sorts of businesses and industries. Companies hire or contract the consulting firm to come in and analyze their IT systems and structure.

The job itself is not short of challenges, however, and the path to becoming a successful IT consultant is fraught with its fair share of ups and downs. But hey, which job isn’t? Experience is the best teacher they say, and only after you’ve worked as a consultant for a number of years will you finally gain invaluable understanding of what is expected of you. Learning from the experiences of those who’ve been in this business for long is a good starting point for those who decide to venture into the world of IT consultancy.

When businesses are trying to expand and require professionals to lead teams, terminology may get in the way of who performs what roles. When it comes to information technology (IT), new and vital professionals may seem hard to differentiate between one another. However, there are key differences between specific professionals needed with IT departments. Here are the responsibilities that differentiate between an IT manager and an IT project manager.

IT Managers

IT managers are the leaders of the entire IT infrastructure a business has to function properly. The IT manager must lead the entire IT department to regulate and maintain the IT network for the business. As a manager, this IT professional corresponds with other departments in the business about how the IT department is implementing the goals the business is aiming toward. In addition, the manager must be fiscally responsible and answer to executives and financial officers in the business the reasons behind certain costs and investments. Because of the dual computer technology and business acumen this profession requires, many IT managers have a Master of Business Administration (MBA) related to information technology.

IT Project Managers