Would you rather: Maintain your Technology, or Accomplish a Business Goal?

The fundamental law of running a business successfully is to maintain one’s position in the market; market share is the most vital indicator in the long and short run of the profitability index a business holds. However, as one of the most basic economic principles “People face trade-offs” comes to play here, it becomes substantially difficult for companies to make the right decisions.  Making the right decision at the right time leads to a better functioning business, this is, however, is easier said than done. As businesses tend to invest their finance in projects that will prove to be favorable shortly, certain variables rise to the surface. By talking in a more professional tone, decisions are made based on the net present value a project has, calculating whether maintaining the company’s information technology system or investing in a project to achieve a certain business goal, is simply a matter of calculating the net present value they both have.

Accomplishing a business goal, if not more, is equally important as maintaining the information technology infrastructure that keeps the business up and running. An absolute balance is required, if either one is compromised, dire consequences will be faced by the business. So if a trade-off had to be made, which one should be selected? The conclusion can be arrived by simply comparing the opportunity cost both the decisions have, if accomplishing a business goal is given more priority over a well-maintained IT system, efficiency, time and human labor will be compromised along with the additional cost of hiring additional staff to overlook the IT related functions. The expense incurred by having IT department far exceeds the cost being incurred by accomplishing a business goal, making the opportunity cost far greater than to be considered insignificant.

On the other hand, investing solely in the IT systems maintenance might halt the progress of the business. Instead of having to weigh the decisions, a new perspective can be considered that minimizes the opportunity costs, this perspective suggests, looking at a well-maintained information technology infrastructure, as a means to accomplish any business goal. Maintained IT systems have a significant amount of perks, which include increased productivity, improved efficiency, better time allocation, fewer costs, superior functioning in terms of management, security, recovery, etc. the method to accomplish these objectives is to outsource the company’s Information Technology system, this is achieved by giving up a certain amount of control and contracting a third party to handle some of the company’s operations.

By outsourcing the information technology infrastructure, companies free themselves of the additional costs of having to maintain it themselves and the responsibilities associated with it. Contracting a third party to handle business affairs, might seem absurd at first but it is just a misconception, no breach in confidentiality of the company and the clients or customers of the company is guaranteed, making outsourcing a beneficial decision. A third party vendor has access to more resources and can manage the IT system quite efficiently than a company can accomplish on its own, including security, recovery, firewall protection, filtering content, malware detection, malware removals, virtualizing, cloud services and improving communication.

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