Cost is possibly the most important criteria when deciding to outsource services, IT or otherwise. However while cost is important, perhaps equally important is location.
Until recently, many businesses began outsourcing in countries (such as India) where costs, particularly employment costs, were lower. However while this may seem more viable than outsourcing in your home country, it may not always be the wisest idea.
The idea of keeping centers closer to home has become something German businesses are developing. For instance, one German company decided to locate its center in Poland rather than Asia. Spokesperson Eva-Maria Winterol commented: “We are definitely seeing a broadening of options for German companies.”
Winterol added: “Like others, German companies are only too aware of the benefits and opportunities offered by low-cost locations.”
Outsourced IT services can also be problematic unless the business is able to have some access to the systems. This is where cloud computing is beneficial. It does not matter where the main location is, provided there is an internet connection with easy access.
Germany is also unusual as it seems many companies effectively share services via hybrid infrastructures. Since the cloud has this ability to offer public, private and hybrid infrastructures, it might be something that other companies could consider.
In other words, it's no longer just a matter of deciding to outsource IT services, but also a matter of how.