DC Velocity posted an article in the May 2014 issue titled What Do Shippers Want? Custom IT Solutions. The article stated that, “the top challenge facing CIOs is providing custom IT solutions for their clients.” Several CIOs stated that they would rather build their own IT solution rather than outsourcing it. Why is it that now companies are looking to bring their IT solutions in-house?
In-house IT has major advantages for 3PLs:
- Easy Access: With a team in-house there is no competition. In-house only has one client, which is the company they work for. When outsourcing companies may have to wait in line to get assistance, which could potentially cause an uproar in the office. An organization’s IT Team knows the company and has a relationship with the staff, which means they are more driven to help. If there is an issue, the IT Team is always available to help with a number of issues that can occur daily. These issues include, but are not limited to:
- Troubleshooting email problems
- Making sure that remote users have access to the system
- Updating software
- Installing new software
- Fixing simple issues:
- Broken technology
- Printer problems
- Dead keyboards
- Cost: There are no surprises: With in-house IT there is a budget planned, and although software may be an additional cost, at least there is the IT Team to implement it.
- System: In-house IT means that companies are easily able to customize solutions to what they need and what their customers want.
- Having control over the system gives an organization a competitive advantage, because that company differentiates themselves from competitions.
Not every company needs in-house IT, but according to the article To Tech or Not to Tech: Keep Your IT Support In-House or Outsource? from LINESHAPESPACE.com there are some clear signs it’s time to bring in an IT team:
- The person who handles the technology has little to no billable time.
- The business cannot get work done effectively because of the technology.
- The company’s equipment is aging.
- There are constant software issues.
- Clients suffer because of the company’s technological needs/issues.
- Technology seems to simply get in the way.
Hamilton Setende posted the article Differences, Advantages and Disadvantages Between In-House Development IT Systems and Industry Standard ERP System on Academia.edu. Before making the final decision to bring an in-house IT department, it’d be wise to examine the disadvantages to an in-house IT department according to Setende:
- It can be costly to maintain and improve the system.
- It’s expensive to change to newer technology
- It is time consuming to develop.
- Depending, IT can because rather expensive with all the components, such as analyzing requirements, gathering, programming, designing, implementing, testing, user training and maintenance.
Considering how many clients are looking for custom IT solutions, many 3PLs are exploring the option of bringing IT solutions in-house, but it is not the right decision for every company: Outsourcing is the logical option for some organizations. Whether a company decides to have in-house IT or outsource it, businesses need to have updated IT solutions.