Data Center Outsourcing is no longer just a passing business trend in the technology industry. The incalculable volume and quality of value-addition it brings to a company’s IT operations has made it a standard practice in other industries since.
How did “outsourcing” of data centers suddenly change from being a “trend” to a full-fledged business model?
There are six fundamental reasons which have seen the linear and explosive adaption of Data Center Outsourcing globally. A Research firm, Gartner’s survey reports that, the number of US companies which have outsourced 100% or partially to Indian data centers exceeds 42%.That nearly-50% of companies in the US has found outsourcing their data center activities to India providers to be good for them appears to be for the following 6 Critical Reasons:
1. Cost efficiency – Companies in the US have found that their outsourcing partnership with Indian data centers allows them to control costs. They have found it easy to scale their data center needs with a managed server hosting. With minimum fuss they can expand only when a need arises, and need not worry about heavy-investment that a one-stage expansion phase would need.
2. Skilled External Resources – Another reason why the US companies find comfort in outsourcing is the easy access to skilled external resources. They are freed from maintaining expensive expertise that any full-fledged data center required – like networking, security professionals. By outsourcing, equipment, processes and talent can be leveraged without the shortcomings of directly maintaining them.
3. Better utilization of internal resources – The process of outsourcing data center activities to third parties in India, allows companies in the US to use their internal teams for in-house needs. They have found better (the best) value in engaging these teams in core applications and deliverables.
4. Business Centered focus – The most critical reason that the US companies find outsourcing to India a big value-addition is the freedom they gain on refocusing their resources and talent on core operations and better customer engagement. The high level of professional data center process delivery by Indian service providers have (has) been the foundation of many of the success these US companies have seen in client-facing services.
5. Faster work scope – When US companies began to outsource to Indian data centers, they realized that there was a distinct absence of workscope creep. What took them months to accomplish in-house at US data centers was shortened, due to the professional approach adopted by Indian service providers to resolve data center issues like uptime, availability etc.
6. Add Benefit of cutting edge Management expertise- Companies switched to outsourcing their data center needs to Indian providers after they found that sophisticated and cutting edge management was leveraged to handle the large-number of projects. For small and medium companies with in-house data centers, the benefits and cost of such ultra-efficient management was inverted and prohibitive.
Every business house of mid-sized company will have to evaluate each of these 6 critical reasons subjectively to optimize their outsourcing benefits. No longer can the direct and indirect efficiency of outsourcing data center processes to companies in India be ignored. Just as there are specialists for different aspects of medical treatment, the technology industry too is undergoing such over-specialization. Service providers in the data center industry always invest in upgrading their infrastructure to include the latest developments, thereby adding greater efficiency to business houses that are associated with them.