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

Toshiba has released a new line of solid-state drives (SSD) using 19 nanometers, which is currently the industry’s smallest lithography process.

The lineup will include mini-SATA and 2.5-inch form factors along with drives in 7mm and 9.5mm heights. All drives will use the most current serial ATA 6Gbps interface protocol.

We are not all equally motivated. Some people have more self-drive than other people. This is why we find that some people always end up at the top even when the odds are against them. An employee, with this realization, through the Human Resource department, should be able to design efficient career development systems. For this system to work, the employer must understand the nature of the business environment in which they are operating.

Why Train Employees?

The purpose of training employees is to enable them to grow with time and increase their efficiency. The business world is quite dynamic, nothing stays the same for long. Training one’s employees allows them to keep abreast with the ever changing technological advancements and many other factors that are relevant to his/her line of work. Employees cannot be expected to solve all their employer’s expectations with static skills and techniques. Even the most updated technology becomes obsolete at some point.
People are the biggest assets in organizations. For an establishment to flourish, it is important that the employer understands certain key things that help spur their development.

In a report from the Harvard Business Review, “The Impact of Employee Engagement of Performance,” the most impactful employee drivers are:

Disruptive technologies such as hand-held devices, cloud computing and social media are rattling the foundations upon which traditional businesses are built. Enterprise customers have grown smarter at ensuring the latest technological trends work in their favor. Everyone is trying to zero in on their core competencies by employing commodity services to run their business.

Likewise, enterprise application vendors need to zero in on their core competencies and enhance more value to the businesses of their clientele by leveraging standards-based commodity services, such as IaaS and PaaS, provided by leaders in those segments (e.g. Amazon EC2, Google Cloud Platform etc.).

What else enterprises need to do is learn to adopt new and emerging technologies such as cloud, utility and social computing to build on them to penetrate new market avenues.

New small and medium-sized entrants into the market are constantly challenging enterprises given their ability to rapidly turnaround and address the requirements of the customers in a cost-effective manner. Additionally, these new advancements also affect how enterprises create, deploy, and manage solutions and applications. If you take the example of Force.com, for instance, you find that it’s a common war zone for enterprise application vendors to furnish SME markets with their applications, with the new entrants mostly having an edge.