Reduced Outsourcing Expense Without Increasing Internal IT Staff
According to Computer Economics, organizations increased their IT outsourcing spending, allocating 11.9% of their budget for this purpose. But is this really necessary? Do companies need to spend more money on outsourcing in order to improve their IT operations? Hitachi Vantara managed to accomplish IT improvements by doing the opposite–they reduced their outsourcing expense without increasing internal IT staff.
Hitachi Vantara, a Hitachi subsidiary, spans across over 100 countries and has a workforce that is more than 6,000 strong. The company specializes in developing modular mid-range to high-end computer software, data storage systems, and services. They sell these products and services around the world through both direct and indirect channels to Fortune 100 companies and the like.
Hitachi’s goal was to grow their current clients and use new account acquisition to secure additional business. The company wanted to concentrate this expansion to their Managed Cloud Services, Enterprise Cloud, and Storage-as-a-Service offerings, which all fall under the purview of their Managed Infrastructure Services team.
The problem was that this project, as with any new business project, necessitated the company to take their available resources into consideration—it was simply too big of a waste to be paying for outsourced consultants and not using them fully. And then there were the other obstacles that the managed services team was confronting, hindering them from effectively servicing clients, including:
- Competition over talent
- Service delivery model flexibility
- Growing complexities in the project delivery environment
- Growing competition from domestic and foreign market participants
- Increased client knowledge
- Changes and challenges with government regulationsThe managed services contracts generally come with a number of benefits, such as locked-in revenue streams and scalability. Unfortunately, the various delays and challenges were curbing these positive outcomes.
Hitachi chose to work with Entelligence. They outsourced the challenges they were facing and Entelligence, as a virtual professional services organization, offered essential support to the Managed Infrastructure Services team, including:
Monitoring, Alerting and Reporting Services: Many of the delays that were reducing the advantages associated with managed services contracts were being caused by basic issues and bottlenecks. Entelligence provided the team with real-time monitoring so that problems could be pinpointed as soon as they surfaced. The team was then sent an alert about the problem so that they could isolate and remedy the situation.
Remote Operational Support: As IT plays a greater role in every company, it demands more attention. Entelligence offered this attention at a lower cost by supplying remote IT service and operational management support.
Infrastructure Analytics: What gets measured gets improved. To achieve IT infrastructure operational improvement for Hitachi customers, Entelligence supplied performance analytics to identify how operations could be enhanced, offered configuration automation to reduce manual input, and provided data management.
This combination of services from Entelligence reduced the risk that Hitachi was taking on with their new and expanded managed services engagements. The newly introduced resource management processes allowed for better control and visibility of both talent and finances.
- Without needing to increase the internal IT staff or sacrificing quality, Hitachi was able to reduce their outsourcing expenses.
- The managed services and cloud-based infrastructure provided better support for the expansion.
- The changes reduced delays, allowing Hitachi to scale their services and deliver their product in a competitive way.
For over 20 years Entelligence has hired, trained and deployed the world’s most innovative, productive and engaged IT consultants to the world’s largest OEMs, VARs and Fortune 500 companies. Our consultants are in the top 10% of the industry and tackle the most challenging enterprise IT projects. They excel on every project and at every level of their career through the training we provide and the support they receive from our team.
When you hire Entelligence, you’ll eliminate false starts, mis-hires, failures, escalations, and revisits because we deliver the most predictable, efficient and best-supported service in the IT industry.
Send Us a Message