Similarly, Cinco points out that softwares being used in back-office operations are a matter of primary concern. "There will be security and confidentiality issues especially if you outsource payroll, database maintenance, and other back-office process which provides them access to information," shares Cinco who, since he was tasked to handle IT planning and development since 2007, has been in charge of taking back control of the more critical systems in their organization while outsourcing those that are non-critical but essential to their operations.
Cinco warns that this confidentiality and security issue may lead to abuse within the user-vendor relationship. "The outsource provider gaining access to your information will see business opportunity," Cinco shares. "[The service provider,] having knowledge of how much money you make will then try to diversify and try to take on more projects even if they cannot give preference or provide the exact fit of skills or solutions needed for your project.
After taking in the pros and cons of IT outsourcing and finally deciding to outsource, the concern that you will then tackle is from whom to outsource. Do you outsource all needed IT from just one vendor or do they take in products and services from different vendors?
Our Lady of Lourdes Hospital Chief
Information Officer Myrna Rabulan notes from their current outsourcing status that the advantages of multi-service providers outweigh the disadvantages of a single-service provider.
"Some advantages of a multi-service provider are competitive pricing, technical expertise and practices can be shared. [Your company] can also lower the business risk in case the service provider closed down," shares Rabulan who outsources accounting software, hospital information system, payroll, and web development.
Meraclo's Cuan shares that the power distribution company has taken in multiple service providers, specifically for their enterprise asset management, enterprise database, and ERP software. Cuan notes that they have limited their selves because they "try to make sure that there's sufficient scale."
He also maintains that it is important to build good relationships with their service providers. "We build partnerships with them so that if they grow, we grow. I there's a new solution from them, we benefit from the solution."
However for Andaya, outsourcing from multiple service providers is also a strategy for the company. "We tend to spread out the work to many different firms mainly because of data privacy issues," says Andaya. "We believe no one firm should know our overall strategy so spreading out the work to different companies is the best way to ensure that our information is not used in any wrongful way."
In general, outsourcing from single or multiple service providers should work to help you further your company's goals. Cinco, who also believes in outsourcing from different service providers, shares that as "technology keeps changing at a fast pace, we wanted to maintain our competitiveness by tapping these technologies or resources which would greatly benefit our objectives."
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