Another major brand opts for IT outsourcing


supply chain IT outsourcingAs many companies that operate supply chain components work hard to remain competitive on a national and global scale, many executives are looking to IT-outsourcing providers for cost-effective services.

IT service providers make it easy for companies of all industries to stay abreast of the latest IT innovations and solutions that can improve productivity, reduce wasteful spending and enhance growth. Without leveraging expert IT knowledge and experience, companies run the risk of falling behind competitors and losing market share in their respective industries.

Small companies have long looked to IT service providers to outsource certain technology operations, allowing for obligations to be met with minimal investment in infrastructure or employees. However, many large enterprises are also partnering with IT service providers to ensure IT practices are consistent and cutting-edge, allowing for resources to be allocated elsewhere in the company to improve product development and marketing.

By not working with IT service providers, companies may spend more than they have to on IT tasks and priorities, taking away valuable time and money from other aspects of the business model that enhance growth. Many IT service providers understand how to leverage technology to effectively reduce costs while driving innovation, helping aid in market growth and the acquisition of new business or capabilities.

GM outsources
According to Technology Review, the CEO of General Motors is facing a major decision as the leading automotive company looks to introduce a new line of cars. General Motors' new CEO Randy Mott has chosen to outsource the company's IT services to reduce costs, after GM neared bankruptcy at the onset of the economic crisis. General Motors, like many other global corporations, is depending on IT service contractors to accomplish standard and complex IT tasks without housing an in-house IT department or paying for full-time staff and infrastructure. General Motors is now outsourcing 90 percent of its IT obligations to contractors outside the enterprise.

Outsourcing trends
The latest Strategic Guide from analyzes growing trends in IT outsourcing across numerous countries and industries. While historically, companies have elected to outsource IT operations to developing countries, many businesses are contracting with U.S. providers due to the many perks associated with domestic contractors.

U.S. IT service providers tend to be smaller companies that are easier to work with and have no language barriers. When negotiating a contract or discussing details of a business plan, companies can enjoy a clear channel of communication between the company and the contractor. U.S. providers are also familiar with industrial trends, consumer purchasing behavior and national compliance standards that can greatly impact business operations and IT strategies. As a result, it is easier for companies to make changes to contracts, avoid costly penalties and brainstorm with providers by opting for domestic IT service companies.