Why is this Opportunity worth my time?
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Times have changed. To compete effectively, businesses must focus on what they do best and where they add the most value for their customers. Many are running risks that the solutions they are investing in will not meet their expectations. Increasingly companies of all sizes see outsourcing selected components of their operations as a viable choice for improving operational efficiencies and improving customer service.
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Opportunity at a Glance
How do I decide what to outsource? The first step is understanding your organization’s core competencies - where do you provide better value to your customers than your competitors? Activities that are not strategic or related to these core skills are candidates for outsourcing. Another way to look at it is that while these activities may play a key role in the functioning of your business, they may not differentiate you from your competitors. Outsourcing these functions can assist you in providing greater value to your customers at a lower cost.
Why would I want to outsource my infrastructure? Going forward there is a need to reduce costs of both computer infrastructures and staffing as well as application support. Many organizations do not have the resources to maintain dedicated computer personnel in the way large businesses can. Reducing operational costs is a key benefit of outsourcing. Other notable benefits include:
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Improved focus on core mission |
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Increased flexibility to meet changing business conditions |
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Improved quality of service |
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Reduced capital outlay |
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Improved cost management |
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Lower infrastructure risks |
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Access to specialized knowledge and skills |
Businesses that currently maintain an in-house staff are also seeking ways to maintain or improve their position in the marketplace while reducing costs. These customers come to us for a long-term alliance; looking for reliable service and support to augment or substitute for their in-house resources.
Isn’t this just about lowering costs through staff reductions? We find that organizations are not typically looking for the lowest-cost provider. They want reliable providers of service and expertise at a reasonable and competitive price. The goal is to realign staffing requirements to allow you to concentrate on your core business.
Next Steps
At Concentric3, we can guide you through the outsourcing decision-making process including:
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Identification of core vs. non-core competencies and functions |
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Recommendations on which activities can be performed more efficiently or cost-effectively externally |
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Recommendations for process optimization |
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Creation of governance plan to manage outsourcing relationships |
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Transition of resources to new model |
We can also leverage our strategic alliances with our Vendor Distribution Network, which includes key service areas such as Transportation, Warehouse Management, and Project Management, to bring additional efficiencies and value to the relationship.
At Concentric3 we believe that the success of our outsourcing relationships are built on commitment, trust and open communications between us and our customer.
Let us know how we can help
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MSP Advantages - a ComputerWorld study of businesses that used MSPs found that:
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44% of the organizations experienced a return on investment greater than 100% and 12% reported ROI of more than 1,000%.
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The average payback for an outsourced application was 1.33 years on an average total investment of $4.2 million |
Gartner advises - “time to get back to basics and reassess the essential processes that affect enterprises' ability to respond quickly and effectively to challenging business”
Contact us to find out more about the VDN as well as our other application and website hosting services.
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