Infrastructure services – best practices followed while outsourcing IT Services

Fortune 500 organizations outsource close to 40% of their IT infrastructure and manage the remaining through an in-house IT team. However, with increase in management complexities and high costs, outsourcing is expected to touch 65% in the next 3 years.

Organizations manage outsourcing vendors through effective SLAs and KPIs which define the costs involved, services offered, response times, completion dates, etc. They also impose penalties if the terms of the SLAs are not met. The $105 billion managed services market which includes data centre, networks, mobility, infrastructure and security services is forecast to grow up to $190 billion by 2019. The market is also expected to grow at a CAGR of 12.5%.

Managed network services alone constitutes about 30% of the overall managed service market and is expected to grow at a CAGR of 10%.

Challenges Faced by Organizations to manage Infrastructure In-house:

• Unpredictable on-going cost of management and system upgrades
• Cost of hiring and training a dedicated personnel
• High maintenance costs while implementing additional features like security, capacity and device management
• Dip in productivity due to obsolete technology and applications