- The network is a critical utility in the gaming and hospitality industry – it requires constant availability and reliability. Many organizations cannot meet their network internal SLAs under such demands or are doing so at a very high cost.
- Outsourcing presents an opportunity to reduce costs and improve capabilities. However, making the case to outsource is difficult. Outsourcing does not reflect favorably on EBITDA and the controls and regulations can deter management from pursuing the project.
- Outsourcing itself is difficult. Based on an Info-Tech survey, 42% of organizations do not receive the value they expect in their first year of outsourcing. Without careful planning regarding what to outsource, which vendor to use, and how to govern the outsourcing relationship, your organization will not succeed.
Our Advice
Critical Insight
- Look to historical performance to assess your current capabilities and make the case to outsource. If you haven’t historically been able to meet SLAs, outsourcing presents an opportunity to bridge the gap.
- Outsourcing cannot be achieved with a “set and forget” mentality. Active management of your vendor is crucial to outsourcing success.
- When failure occurs, instead of placing blame on the vendor, collaborate with them to continuously improve and prevent the situation from happening again.
Impact and Result
- Follow Info-Tech’s methodology to boost your chances of outsourcing success and reduce network costs, improve network capabilities, gain access to new skills, improve ability to scale, and increase efficiency in internal resource allocation.