Abstract
Currently, IT management in Mexico is not considered an essential department in the organization, for this reason the service provider companies known as Outsourcing are increasingly in demand, this is undoubtedly due to the lack of vision of some entrepreneurs in the way of integrating information technologies for the benefit of the company. The following document identifies the benefits and drawbacks of having an IT management as a fundamental area of the organization, and in which functions external companies can be used. The foregoing with the aim that managers know and apply computer resources for the benefit of the company.
Introduction
“Today's executives are faced with a host of unprecedented changes and trends. These changes include the need to be global, the need to grow without using more capital, the need to respond to the threats and opportunities of the economy, the aging of the workforce, reducing costs and fighting for the consumer's thinking ”. Outsourcing companies have been the response to these needs, achieving a growing trend in different industries and one of the areas in which this document is focused is that of Information Technology (IT).
With the following article you will be able to know the reasons why managers prefer to hire external companies instead of having their own department that is in charge of technological projects.
What is Outsourcing
"Outsourcing, also called outsourcing or outsourcing, is the economic process in which a specific company moves or allocates resources aimed at fulfilling certain tasks, to an external company, by means of a contract."
In other words, it is hiring a service provider company to carry out an activity or project for the benefit of the organization.
What is IT management
It is an area or department in the organization in charge of designing, implementing and managing technological resources that help meet the objectives of the company in an efficient and effective way.
Outsorcing Trends
“IDC, the world's leading market intelligence, consulting services, and conference firm for the Information Technology, telecommunications and consumer technology markets announced through its subsidiary in Mexico that at the end of 2006 the IT Outsourcing market had increased by 15 percent compared to 2005 sales. The increase is significant considering that from 2004 to 2005, this segment grew 13 percent ”.
Thanks to the previous statistics carried out by IDC, it can be deduced that IT outsourcing trends are greater every year and this increase is due to executives who, thanks to their decisions, are opting for this type of services.
Why choose external companies
One of the questions of the computing community is the reason why managers prefer IT outsourcing companies, below are the most salient factors that are the basis for their choice.
- Cost reduction.- It is one of the main points that executives make to opt for this type of company.Experience.- These companies have the necessary knowledge and highly qualified personnel.Access to new technologies.- When hiring a company specialized in IT, it is up-to-date and has state-of-the-art technology. Decrease in cost in human resources.- The personnel who develop the activities are external, so there is no type of commitment and responsibilities towards them. Concentration of objectives. - With this, the company will concentrate on its main activity and thus will pay more attention to its own business.
"Outsourcing allows the company to eliminate fixed costs, allows specialists to be more competitive and to provide a better service."
IT area benefits
Having an IT department in an institution can bring many benefits, which are mentioned below.
- Information security.- Confidential information is one of the points that organizations take care of the most, since having the information is having power. By having an IT department in the company there is more security and confidence that there will be no leaks of information. Right decision-making.- With the IT area in the organization, decision-making on technological resources is improved and investments are avoided Better business processes.- One of the functions of the systems department is that it is related to the business objectives, thanks to this there is a constant commitment to improve the company's processes with the help of information technologies. The company has contact with new technologies that offer opportunities to innovate products and processes. Knowledge in the operation.- There is no doubt that those who know the best about the operation of the company are the internal personnel and with this it is possible to take advantage of the areas of opportunity and attack weaknesses. Times.- Time savings by having the personnel at all times. Use of resources. - The systems area tries not to make unnecessary expenses and to take advantage of the resources that the company has.
IT insight into owners
“The owners or directors of the companies do not give much importance to the IT department and this is mainly due to the investment cost, since the technology is expensive and requires constant updating. Companies that are not technology and do not have a focus of their business in the IT area, require staff or third parties to advise them and almost always their suggestions are taken as an expense rather than an investment ”.
"According to statistical studies by ECLAC, they show that SMEs in Mexico employ 78% of the economically active population, and that they contribute 68% of GDP.". Therefore, it can be said that the vast majority of companies in Mexico are SMEs and that in these there is almost no knowledge on the part of entrepreneurs or decision makers about technological aspects, which prevents the IT area from being developed and it is not given the importance it deserves
"The problem is that they only notice that there is a systems area when something does not work and if you have a good systems staff, they may even forget the name of the guy who walks with cables."
The vision that the owners of SMEs in Mexico have on the IT area is not adequate and this is because it is a country that is not very up-to-date in technology and information technology. They consider the systems department as those in charge of supporting users and maintaining equipment, but the reality is different since currently information systems or software perform tasks of our daily work with what the management of electronic information and dependence on these systems is increasing.
Large companies in Mexico are few and their vision is very different from SMEs, since for them IT management is one of the main areas in the organization, this is because the vast majority of processes are automated With an electronic system and if they fail, it is not possible to perform many tasks, causing in some cases thousands or millions of pesos to be lost.
The main problem of the IT vision in the owners is that since their businesses are small and they have been successful without using technologies, they do not see the need to have a systems department in their company for the reason that it involves monetary resources and what the least they want is to spend to spend. It is true that they have been successful without the support of technology but they have also not realized or do not want to believe how much they can save and automate with them. Not all information technologies were created to be a luxury, if you do not have to analyze which of these can serve the organization to get the best out of it and have a competitive advantage.
Qualified IT staff
One of the consequences of the previous point on the importance of the IT area in the organization is reflected in the lack of qualified personnel, since if it does not have the support of the companies or if they do not give it the appropriate importance there are risks that IT human resources cannot be updated and that the workforce can be replaced by foreign services.
“The lack of qualified IT staff has resulted in a sharp increase in salaries in India. One of the consequences is that India is now beginning to outsource IT services to Mexico ”. More and more foreign technology companies are coming to our country offering services and this is palpable in software development.
Conclusions
As described in this document, the boom that Outsourcing has had in Mexico is due to many factors, such as the lack of qualified IT personnel, the low costs of external companies, the vision of an IT direction in the organization. For these reasons, the service provider companies are becoming stronger and stronger and favor that Mexican IT professionals are not taken into account and are replaced.
Outsourcing services are efficient knowing how to handle them and using them in areas where they do not put the interests of the company at risk. In the case of IT, it is recommended to use them for technical support, repair and maintenance services. While the positions that are decision makers need to be indoors or belonging to the organization.
Thanks to the impact that information technologies such as the Internet, wireless networks, cell phones, etc. are having. Little by little Mexico is coming to change technologically and with this the vision of entrepreneurs about the importance of the IT department in their organization.
When SMEs realize that aligning the objectives of IT management with those of the organization can improve many aspects such as increased profits, at that time the IT department will be valued. But until what point will they realize this? I hope it is by reading this article!
Bibliography:
Monographs “Outsourcing, Business Strategy of the Present and Future” Accessed June 12, 2007 at URL: http://www.gestiopolis.com/ley-sarbanes-oxley-impacto-empresas-mexicanas/
Wikipedia The free encyclopedia “Subcontratación” Accessed June 13, 2007 at URL: https://es.wikipedia.org/wiki/Subcontrataci%C3%B3n
Kio Networks "I keep your data" Accessed June 13, 2007 at URL:
Boomeran "Total Outsourcing" Accessed June 13, 2007 at URL:
Indomitable Raised "The importance of technology and security in companies" Accessed June 20, 2007 at URL:
"SMEs and the technological vanguard in information systems" Accessed June 20 2007 in URL: / PyMEs ylavanguardiatecnologicaeninformacion.doc
TI Newspaper "Strong Indian Outsourcing Forecast to Mexico" Accessed June 20, 2007 at URL:
