Midsourcing manages knowledge while controlling costs.
In reality there are two driving factors that need to be considered for a Small business. The first factor is cost control. The decision to outsource, hire a dedicated IT person, or utilize the most technically savvy person (not sourcing) are all decisions that influence financial output. Very seldom is this decision made on the basis of the actual complexity of the technical environment. This is where many small businesses fail to fully capitalize on their technology investments. Some decision makers outsource installation of highly complex systems and then not source the support of them. Yet, others hire a dedicated IT person to manage and build a simple technology system. This leads to the question of which is the right way? Unfortunately, this is always based on perception of financial savings or investment as viewed by the technical aptitude of the decision maker. However, it is best put that any IT strategy decision based on cost control and perceived complexity is the wrong one. The reasoning for this is based on the second factor of knowledge management.
Knowledge Management has two very important considerations. First, How much knowledge is required to fully utilize and maintain the technology in my business. Secondly, how much knowledge is required to continually secure and improve the technology in my business for the largest return on investment. False assumptions in regards to knowledge management combined with Cost Control usually lead to technology management paralysis. Which is the state in which a companies technology decisions are limited based on anticipated costs or lack of knowledge.
Midsourcing is the most effective way to manage knowledge and control the costs of keeping your technology infrastructure functioning. It is a well rounded IT service model for small businesses because it controls costs better than Insourced or Outsourced services while eliminating the need for a Not-sourced service strategy. It also seeks to incorporate an ongoing alignment of your business strategy to technology usage.
Benefits of Businertia MidSource Agreements;
· On average Midsourcing is 43% more cost effective than outsourcing.
· Costs less than hiring the equivalent in IT talent.
· Knowledge is more readily throughout an organization.
· Management of multiple customer environments allows for exchange of security or best practices at no additional charge.
· Efficient and well documented procedures eliminate the need for not-sourcing.
· Key personnel can focus on performing tasks that benefit the business instead of being a technology middle person.
· Improved Planning and Budgeting helps to make the right decisions on technology investment at the right time.