Outsource vs. Insource vs. Colocation Analysis

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There is a myriad of options for delivering IT services. We help clear the fog and ensure that our clients understand the sourcing parameters before any analysis begins. We find getting a consensus on the definitions of terms is critical. The industry’s use of terms has become very gray and often bent to meet a vendor’s needs.

Our analysis focuses on understanding current state costs for those costs that could be affected by altering the IT delivery model. While cost of facility operations may be reduced, they could be more than offset by increased communications costs. Transition costs can be significant and must be factored in as well. Beyond financial analysis we evaluate risk with the primary focus on security and availability. Technical issues, such as application latency, will need to be evaluated as they can create substantial challenges.

Our Point of View

Before exercising vendors and telegraphing intentions that have not been thoroughly vetted, understand the ramifications first. Many organizations seek vendor advice before doing internal feasibility studies. That’s like going to the Corvette club and asking them if they like Corvettes.

Many organizations do not have an understanding of their data center total cost of ownership. Having the total dollar figure is not sufficiently useful as it is difficult to compare against third-party provider fees. We will assist you in formulating costs into metrics that are similar to the third-party providers’ pricing.

Leveraging a third-party provider may result in some reduction of IT staff. Key staff will need to become your resident SMEs who can oversee technical and performance aspects of your provider. This is a skill set shift from an operational to a managerial role.

We Work Differently

We spend time upfront with our clients iterating on aa SOW until they feel comfortable. In addition to empowering our clients to have significant input into the creation of the SOW, it provides an opportunity to see how we work and get to know us. This build confidence in the relationship and results in a tighter and better financially targeted SOW.

Our clients seek independent advice to solve difficult issues. As a third-party, we are the outside voice and don’t bring organizational bias with us. Fodere’s guidance will always be aligned with your organization’s goals.