| Solutions for HR bottlenecks in STAFFING THE IT | | | | for increasingly important functions such as security |
| DEPARTMENT | | | | and business continuity away from vendors to full-time |
| IT staffing is a delicate balancing act. Hire too few | | | | employees. |
| people and you face an overburdened IT department | | | | In the end the trick to IT staffing is satisfying two |
| that may actually impede growth. Hire too many, | | | | sometimes contradictory imperatives. There is always |
| however, and you waste money. Your goal, of course, | | | | pressure to perform and pressure to keep headcount |
| is to make the biggest impact at the lowest cost. | | | | as low as possible. Meeting both demands is a |
| Companies that study their staffing requirements | | | | challenging goal that every business must pursue in its |
| methodically, focus on efficiency, and make smart use | | | | own way. |
| of partners can keep IT headcount low and business | | | | IT skills you need now: Think business, not technology |
| performance high. | | | | IT workers with expertise in security, disaster |
| TABLE OF CONTENTS | | | | recovery, and storage are in high demand. But |
| The Right IT Staffing Model For Your Business | | | | companies shouldconsider business savvy as much as |
| · Calculate IT demand and supply | | | | technical knowledge when hiring, according to many |
| · Focus on efficiency before hiring | | | | analysts and consultants. Here are three reasons why. |
| · Use consultants and outsourced workers to | | | | 1. IT is becoming more strategic. With IT playing a |
| fill in the gaps | | | | growing role in providing competitive advantage, |
| · IT skills you need now: Think business, not | | | | companies need workers whose understanding of |
| technology | | | | business processes matches their understanding of |
| It Department Outsourcing | | | | applications and networks. |
| · What are the drivers? | | | | 2. Communication is critical. Today's IT strategists work |
| · Benefits | | | | closely with businesspeople from across the company, |
| · Risks & Costs | | | | so they must be able to express technical concepts in |
| The Right IT Staffing Model For Your Business | | | | terms nontechnical people can understand. Similarly, a |
| A smart IT staffing strategy is critical to achieving | | | | basic appreciation of business ideas is important. |
| business goals. While there is no single formula for | | | | 3. Outsourcing is on the rise. As vendors take greater |
| determining how many IT employees your company | | | | responsibility for keeping servers running and systems |
| needs, or whether to outsource a part of your IT | | | | available, the ability to supervise contract workers and |
| department, by following a few basic principles you | | | | manage partner relationships is fast becoming a |
| can strike a balance between controlling headcount | | | | must-have skill for full-time IT employees. |
| and meeting business requirements. | | | | It Department Outsourcing |
| Calculate IT demand and supply | | | | Outsourcing a part or complete IT department frees |
| To get a sense of whether your IT department has | | | | up a company's valued IT personnel so they can |
| the right number of people, compare your current IT | | | | support their mission critical business processes. In |
| staffing ratio to prevailing averages. Companies with | | | | addition many companies today are finding that they |
| 100 to 500 employees typically have four or five IT | | | | cannot take the risk or endure the financial burden of |
| staffers, while those with 500 to 1,000 employees | | | | running their whole IT department in-house. Outsourcing |
| usually have 10 or 11 IT staffers. Be careful when using | | | | a part or complete IT department can make financial |
| such broad figures, however. Every business is | | | | and business sense to companies of all sizes. In many |
| different. For example, rapidly growing businesses | | | | organizations, users demand the highest level of |
| often need larger IT departments, as do companies in | | | | service - both from a technical and a customer care |
| technology-oriented fields. | | | | perspective. This can be challenging for smaller |
| Another approach is to conduct a benchmark study of | | | | in-house teams to achieve as they are often so busy |
| IT staffing at similar companies in your industry. | | | | tackling the day-to-day issues, making it difficult to |
| Consultants can help with such projects, but less | | | | implement any IT improvements. |
| formal (and less expensive) research techniques can | | | | Outsourcing IT department - What are the drivers? |
| be effective, too. Talk to peers from trade groups and | | | | Growing pains: Is your company growing so rapidly or |
| professional associations about how many IT people | | | | making acquisitions? What impact is this growth on |
| they have on staff, or ask your technology vendors | | | | your IT staff and resources? Outsourcing either a part |
| how many IT people their clients typically employ. If | | | | or the whole of your IT department is now an |
| comparable businesses consistently use fewer or | | | | accepted mainstream solution. |
| more employees than you do, you may have a | | | | Downsizing: Is your organization downsizing? What are |
| staffing problem. Even better than benchmarks, | | | | the impacts of this on your IT service delivery? IT |
| however, is an annual analysis of your company's | | | | department outsourcing is an option worth evaluating |
| specific requirements. Begin by estimating how many | | | | to save costs and improve efficiencies |
| hours of labor you will need during the coming year in | | | | Infrastructure refresh: Are you coming to the end of |
| each of these three categories: | | | | your IT systems lifecycle? (Servers, laptops, PCs). This |
| 1. Fixed demand: Planned IT projects, such as | | | | is usually a 3 year cycle. This event is the right time to |
| hardware upgrades and application rollouts. | | | | consider the options of IT department outsourcing |
| 2. Variable demand: Unexpected IT needs in response | | | | Business Start up: Is your company in start up mode? |
| to emergencies or changing market conditions. | | | | Getting IT right is important but probably not your core |
| 3. Maintenance and operations: The basic technical | | | | business objective. Consider outsourcing IT to experts |
| support and systems administration work that keeps | | | | who'll support your venture from an IT department |
| your employees productive and your servers and | | | | perspective whilst you and your team get on with |
| networks running smoothly. | | | | making your business work. |
| Next, multiply your total number of IT employees by | | | | Outsourcing a part or complete IT department may |
| the hours in a typical workweek to arrive at a rough | | | | provide the following benefits: |
| measure of the work hours in your current IT labor | | | | · Quick deployment |
| supply. If that figure exceeds your estimated demand, | | | | · Flexibility in the choice of technology and |
| then you are probably overstaffed. Conversely, if the | | | | modules |
| figure is lower than estimated demand, you may not | | | | · Improvement of cash flow management |
| have enough people to get the job done. | | | | · Reduce the burden on internal IT staff |
| Focus on efficiency before hiring | | | | · Efficient use of internal resources |
| There are two ways to address understaffing: | | | | · Strong skills sets at lower costs - access to |
| Increase your workforce or reduce your workload. | | | | a mix of technicians with unique skills |
| Before hiring additional employees, make sure your IT | | | | · Better risk management, especially those |
| staff is as productive and efficient as possible by | | | | risks associated with unscheduled downtime due to |
| taking steps such as these:o Standardize processes: | | | | majordisruptions. |
| Organizations can trim their staffing needs by replacing | | | | · Avoids expensive recruitment |
| ad hoc management processes with standardized | | | | · Cost savings - eliminates the financial strains |
| ones such as those in the Information Technology | | | | that necessarily go hand-in-hand with the running of |
| Infrastructure Library, a popular set of IT best | | | | aninternal IT department |
| practices.o Minimize customization: Supporting | | | | · Time savings - companies are concentrating |
| customized systems takes time and effort, so keep | | | | in their own core business resulting in higher |
| custom adaptations to a minimum on all but your most | | | | productivity |
| strategic systems to help cut IT overhead.o | | | | Risks & Costs of IT Department Outsourcing |
| Consolidate infrastructure: Using fewer, more powerful | | | | IT department outsourcing can expose the company |
| servers and network devices where possible not only | | | | with associated risks that potentially have a higher |
| lowers hardware expenses but helps contain staffing | | | | costs than benefits for the company. Some of those |
| costs too. A consolidatedinfrastructure requires fewer | | | | associated risks could be: |
| people to manage it.o Centralize administration: | | | | · Loss of control over service quality |
| Monitoring your entire infrastructure from a single | | | | · Possibility of service disruption due to |
| control center reduces your need for administrative | | | | instability of vendors |
| staff. Many vendors offer tools that make centralized | | | | · Increased complexity of managing and |
| administration possible. | | | | monitoring the outsourcing contract |
| Use consultants and outsourced workers to fill in the | | | | · Poor communication between the business |
| gaps | | | | and the third party |
| Consider hiring contractors and vendors when you | | | | Outsourcing IT services to a third party potentially puts |
| urgently need specialized talent but have trouble | | | | a company's reputation at risk - if suppliers or partners |
| recruiting full-time staff. Furthermore, outsourcing | | | | let it down. Organizations in both public and private |
| routine technical jobs helps keep IT departments lean. | | | | sectors need a process of regular assurance from |
| For example, a company can use permanent staffers | | | | their external partners. |
| only for jobs requiring deep understanding of core | | | | With a rigorous system in place, businesses can |
| strategies. You must make sure the [full-time] | | | | manage their external relationships and reputation |
| employees in your information services department | | | | more effectively, while allowing legal and working |
| are first and foremost business process experts. | | | | arrangements to be adjusted as the partnership |
| Still, critical technical skills - around legacy or industry | | | | evolves. At the outset risks can be minimized by |
| applications, for example -should remain internal. That is | | | | ensuring that due diligence is undertaken on |
| why many midsize companies are shifting responsibility | | | | prospective service providers. |