With economic future concerns, companies in the US and Japan are increasingly turning to outsourcing some or all IT to professional engineering companies.
Chief Financial Officers and IT Managers are seeing little benefit to keeping IT functions inside the enterprise unless it is a core part of their business. More and more companies are turning to outside specialized IT infrastructure and application support companies. The challenge is finding companies who keep that same passion that internal IT staff have for keeping their businesses and avoid the staffing turn-over that the companies have themselves.
In some cases, outsourcing IT could be a bad idea. In the early 1990s JP Morgan outsourced all of their IT to a famous computer company. In the end, things didn’t go so well and the IT functions supporting the securities and banking business were brought back in house due high costs and low participation. In other cases, IT has been outsourced and hundreds of thousands of dollars annually as well as technology distractions have been eliminated from corporations wanting to focus on their core businesses.
AINEO has seen considerable success in our managed services businesses. As companies continue to cut back on staff to protect their bottom line (ex. Cisco announcing cuts of up to 10,000 jobs), more and more businesses are looking for companies that can stabilize and enhance their information technology.