Monday, June 16, 2008

Are Hosted Services the Right Business Decision for You?

http://www.cio-today.com/news/Are-Hosted-Services-Right-for-You-/story.xhtml?story_id=100008WXUGC4

Sukgu's Comment - I think there are still many companies who have preference to run their own IT infrastructure and staff rather than outsourcing the service. I think it's because of 2 major reasons. The first reason is that there are not many IT service providers operating in Korea. The second reason is that the companies' concern about the security of their data. In summary, I think there hasn't been any proof that outsourcing is much better than running in-house information systems and staffs. However, in the future, as corporations are required to focus on their own core functions and businesses, many frill functions including IT function would be outsourced in most companies. That's just my guess.

The choice to partner with a provider of hosted services is a significant business decision. For some SMBs, the burden on IT is becoming too time-consuming and is stealing the focus of their internal staff. Other businesses do not have the human resources to set up a full-service IT staff and offer their employees enterprise-class applications.

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