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How Data Center Outsourcing Can Reduce Your Operational Cost

Jan 1, 2013 6:00:00 AM

by Charles Bystock

Data Center Outsourcing Can Reduce Your Operational CostReducing operational costs is one of the primary reasons so many companies around the world are opting for outsourcing. Even the smallest business needs to watch the bottom line. But if you’re a very large company that operates in multiple locations around the country or internationally, your need to control expenses increases exponentially.

Data center outsourcing is just one arena in which you can realize significant savings without risking a decline in service levels or quality.                                                  

Whether you’re investigating alternative management options for your data centers or your goal is sweeping transformation to new technologies and processes, outsourcing enables you to take advantage of the hottest IT trends. You can do more, better, with less. You save on direct costs and through increased productivity. In fact, for many companies choosing the right outsourcing partner can help expand services and improve quality, too.

Here are some ways in which data center outsourcing could help your firm reduce operational costs.

A bigger team.

You’ve chosen your employees carefully. They know their stuff and it’s part of their job to think about the future and make salient recommendations for internal improvements. Nonetheless, when you team up with a data center outsourcing partner, you effectively expand your staff.

Your new team members bring new “eyes” and insights that can help you improve technologies and processes in ways you might not have considered. For instance, it’s critical that you stay abreast of the latest IT tools and techniques -- systems, applications and so on. But it’s a never-ending process that represents a significant time investment. Outsourcing enables you to recapture time formerly spent on this without losing any of your competitive edge.

New efficiencies mean additional cost reductions.

Lower labor costs.

You can downsize your IT staff. However, because these tend to be highly skilled, valuable employees, some companies take an alternative approach – keeping now-extra IT people but putting their specialized knowledge and talents to work on other aspects of IT infrastructure and service.

More strategic resource deployment.

Companies love outsourcing because it lets them hand off non-core departments or activities. Eliminating those “distractions” and the countless hours spent on tangential tasks allows you to redirect human and financial resources toward revenue-producing activities and growth-oriented initiatives.

You only pay for what you use.

The inherent scalability of data center outsourcing means you’re always prepared but never paying for idle equipment or personnel. You can immediately adapt to changing data needs based on seasonal upsurges or market-driven downturns. You can grow seamlessly, without having to retool or rethink your data management processes.

Adopting data center outsourcing reduces hidden costs, too.

Customer service may not appear as a line item on your budget, but you know it’s central to your company’s success and profitability. The more you can do to streamline internal operations, especially when it comes to data management, the more you’re able to make the most productive use of staff time.

Outsourcing can help you increase service quality for customers as well as your own internal constituents. You can spend less time promoting yourself to customers and more time delivering beyond their expectations. Even the largest global enterprise can benefit from providing a more responsive and personalized customer experience. You may even be able to offer new services that generate additional revenue or give customers value-added benefits that build loyalty.

Direct operational cost savings that result from data center operations are just the beginning.

Photo Credit: Images of Money

Data Center Outsourcing

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