According to several analysts in this NetworkWorld article, “When looking to strike a deal with a service provider, enterprise IT executives need to take a step back from the need to reduce expenses immediately and think about IT needs a year or more from now. Outsourcing in a tight economy can represent a classic case of ‘You get what you pay for’ to enterprise IT executives.”
You know, EasyStreet believes in providing good value for our customers. We recognize that IT budgets are tighter than ever, but after 14 years in this business, we also know what it takes to provide the level of reliability and support our customers require — and don’t want to degrade our best-in-the-business SLA just to get the sale.
After all, the goal is for ALL of us to stay in business, isn’t it?
The article quotes Ben Pring, research vice president at Gartner, who says, “Oftentimes, you are going to be disappointed with the level of cost reduction you can achieve in an outsourcing deal, and if that is all you are focused on, inevitably, it will produce a bad deal. Historically customers get lousy quality of service when trying to squeeze an outsourcer. In the short term the deal may help a company’s bottom line, but long term, enterprise companies need high-quality services to better compete.”
The article goes on to say analysts advise enterprise IT decision makers to research service providers’ financials, product road maps, deal flow and turnover. “Outsourcers are not safe from the current economic conditions and may not survive the storm any better than others. There has to be a big focus on vendor risk and vendor viability. The deal may sound great now, but if the vendor goes south in six months, where does that leave you?”
You can read the whole article here. End of lecture.