Cloud Computing and IT Outsourcing Improve Profitability

All startup companies start small with limited capital and resources that are stretched to cover expenses. Personnel often multitask and perform more than one role in small companies. As the company grows, reaching strengths of say 50-100 personnel, enterprise heads have to look at new ways to optimize IT management and resource consumption. At the very least, they have to start planning to prepare for the future.

Instead of ramping up in an unorganized manner, SMBs look at smart innovative options that are available to them today. One approach to improving profitability and optimizing resources is to take advantage of cloud computing solutions and outsourcing. By offloading non-business centric tasks to external caretakers, SMBs can reduce infrastructure, management and operational costs. At the same time, they can allocate more resources and funds towards the core competencies of the organization and its services.

According to a whitepaper released by IDC, demand-side research shows that small businesses consistently cite revenue growth as their number one business priority, but efficiency has become more important, especially as firms grow in size beyond 50 and 100 employees into the midsize space.

Tapping cloud computing options

The Solution-as-a-Service (SaaS) model has been around some time. Cloud computing solutions have evolved and matured to offer viable Platform-as-a-Service, IT-as-a-Service, Video-as-a-Service and other specific services. Moving to the cloud offers huge savings – in terms of cost, time, resources, scaling, agility, access to advanced technology, software and hardware management, etc. – but it also requires some ground level changes in your existing setup.

SMBs should look at cloud computing as an enhancement rather than a replacement. Comprehensive transition to the cloud does not work well for small enterprises and it’s best that some parts of the business remain on premise, in direct control of internal IT. The decision to move to the cloud should be based on the predicted ROI and cost increment following expansion. The company may open a new branch, possibly in another part of the world. The cloud computing solution should be capable of delivering results efficiently and effectively around the clock.

IT Outsourcing

Small companies cannot afford big changes fast. But when it comes to IT, it could mean short-changing yourself by not taking advantage of the performance gains of moving to latest technology. This is where outsourcing helps. Look at IT outsourcing solutions and SLAs that:

  • Offer some guarantees of performance
  • Support flexibility in case of unprecedented changes or requirements
  • Provide a clear breakdown of costs
  • Do not require lock-in periods of commitment
  • Support smooth transition of proprietary data to your premises when and if required

Cloud computing and IT outsourcing can make a big difference in business profitability. At the same time, the approach prepares the company for the future, allowing company heads more time to focus on market opportunities and growth.

Source: BTConnect
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