Outsourcing Core IT When You Are Core IT

Today, I provided a quick presentation on the BrightTALK channel on Outsourcing Core IT when you ARE Core IT. It turns out that one of the takeways from this webinar is about your risk of being outsourced based on your IT model. First, your fear and approach to outsourcing really depend on whether you are part of core IT, enabling IT, or transformational IT:

Operational IT is a cost-driven, commoditized, and miserable IT environment that does not realize that technology can provide a strategic advantage. In this world, a smartphone, a server running an AI algorithm, and a pile of paper clips are potentialy all of equal value and defined by their cost. (Hint: This is not a great environment to work in. You are at risk of being outsourced!)

Enabling IT identifies that technology can affect revenues, rather than just over head costs. This difference is not trivial, as the average US employee in 2012 made about $47,000 per year, but companies brought in over $280,000 per employee each year. The difference between calculating the value of tech at roughly $20 an hour vs. roughly $140 an hour for each employee is immense!

And finally, there is Transformational IT, where the company is literally bet on new Digital Transformation and IT efforts are focused on moving fast.

These are three different modes of IT, each requiring its own approach to IT outsourcing. To learn more, check out the embedded webinar below to watch the entire 25-minute webinar. I look forward to your thoughts and opinions and hope this helps you on your career path. If you have any questions, please reach out to me at hyoun @ amalgaminsights . com!

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