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Thursday, November 27, 2003

e business

Sometimes outsourcing is the best answer

By John Hogan
For Dot Com Magazine

TI field a lot of questions as a freelancer. Some are difficult questions that only an experienced network technician could answer. Sadly, though, most are not.

Take a pop quiz with me about your company's technology. The topics are technology training and internalizing versus outsourcing.

1) Yes or no? The technology infrastructure of your organization is a tool that makes your employees more efficient.

The answer should be yes. Employees should use technology as a tool to access, manipulate and disseminate information. Employees should not be slaves to that technology. Every employee on your payroll is responsible for a distinct set of duties, whether those duties include capping bottles or closing million-dollar deals. Figuring out how to delete email, however, is probably not in the job description of anyone in your organization.

2) True or false? Your employees are well trained to use the basic tools of technology that their job duties require (email, web, design software, etc)

Unfortunately, the answer to this question, more often than not, is a hesitant 'False'. Whether you manufacture cheese or lay fiber optic cable, your business has core competencies. So do your employees. Your Master Brewer should make a good stout, not debug network settings.

Lack of internal training leads to questions like:

- "Why do the letters change size when I change my font size?" - "Why do I get this error when I check my mail? It says, 'There are no new messages.'" - "I keep getting 'Out of Memory' errors. I've deleted all the files I can, why do I keep getting the message?"

If your employees are asking questions like these, the chances are pretty good that your technology training isn't up to snuff.

3) True or false? The employees in your organization who are responsible for the upkeep of your technology are well trained in all skill sets that their job duties require.

Your organization's technology needs have, no doubt, gone through significant changes over the past two years. What once started as a small network of two desktop PC's probably now includes an internal email server (Microsoft Exchange, perhaps?), a file or print server, and maybe an external (or internal?) Web server. Companies, sometimes, take a reactive approach to this sort of growth: learn enough to install the stuff, and maintain it only when it breaks. That makes for on-the-job training, sometimes under stressful conditions (like, when the email doesn't work!).

In some companies, the percentage of time an internal system administrator spends just on maintaining email is huge - up to 70% of his or her time, maybe on an operating system or mail transport agent that they were never properly trained to use. Broken down over a 2000 hour year, that's nearly 1500 hours per year just administering the email. (What does that guy get paid? $36k/year?)

4) True or false? Internalizing costs always saves you money.

Dave Troup, President of DCT Technologies in Green Bay, put it to me this way: ãWhy would we spend the resources to maintain something trivial like our phone system when we can outsource it for a fraction of the cost?ä What Dave is saying makes sense: use you employees for their strengths. Dave's team could certainly figure out and administer their telephone system - these people build complex networks, plugging and unplugging all day. The point: phone systems are not their job.

Use the example in question 3 about the email administrator. In that case it would certainly be to their benefit to outsource, at least their email, to someone whose expertise is totally in running email servers. Outsourcing can cost from $35-$85 per hour and higher. That may seem like a lot, but taken against the $25k of the aforementioned (and overburdened) administrator outsourcing may be a good idea.

It's not up to your sales people to debug your network troubles, and it shouldn't be up to your delivery drivers to deliver your Web site. That's not to say that a graphic artist on your staff can't be cross-trained to make a Web site. Use your people at what they excel. Know and accept their limitations and don't be afraid to call for help if you need it.

Now, how do I type an uppercase zero?

John Hogan is a free-lance computer and networking consultant. E-mail your questions or comments to him at [email protected]

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