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Operations, Outsourcing Article, moving it offshore
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Moving IT infrastructure labor offshore

  • Most IT offshoring to date has involved application development rather than basic IT infrastructure services, such as network management, server maintenance, and PC support.
  • CIOs have been uncomfortable sending these critical IT tasks offshore, so the talent pool to supply them has been slow to develop.
  • But offshoring such common tasks is becoming more popular as skills for supplying them develop in popular offshore locations and remote-management tools mature.
  • Executives with a track record of offshoring application development will benefit from their experience, but IT infrastructure has many peculiarities, especially in training, governance, and process and role reengineering.
This article includes the following exhibits:
  • Exhibit 1: Infrastructure labor offshoring is in the early stages of what may become a ramp-up similar to that of application development and business processes.
  • Exhibit 2: Some specialties are easier to outsource than others, depending on the talent pool and the need to keep labor close to other operations.
  • Exhibit 3: After an investment in setting up new operations and a brief teething period, offshoring infrastructure tasks cuts labor costs significantly.

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