Solutions for Mid-Market IT Outsourcing

Although they provide unique challenges, mid-market clients are perfect for those outsourcing providers that can tailor their services to the needs of their customers. With large companies, the approach to overhauling their IT infrastructure needs to be fairly general, creating a strategy that has been tried and tested many times before.

Meeting Expectations

Acora exceed the expectations of their clients by outlining the strategy from the beginning. A good outsourcing provider will come across as transparent, knowledgeable and customer focussed. From the client’s perspective they will be able to plan their operations around the IT overhaul and know exactly how long it will take.

An Open Approach

For a mid-market business they need to trust in their outsourcing provider. This means putting the time in to provide an insight into how the business operates and co-operating with the IT specialists. The more information they have about the specific requirements about the company’s IT system then the better they can tailor their approach and deliver a solution that will work from the beginning.

Many mid-market clients are growing, which is why they require IT outsourcing in the first place. Nurturing an open relationship from the outset means that as these clients continue to grow, they can rely on their IT provider to create new solutions as and when they are needed.

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Why Mid-Market Clients Need to Consider Outsourcing Their IT

The previous article outlined the basics of what clients need to know about outsourcing IT for the mid-market. This article however is focussed on why mid-market clients are benefitting more from outsourced IT strategies than their larger counterparts. Mid-market clients are an increasingly important market for companies such as Acora, where they provide a unique challenge to the UK IT outsource provider.

Different Needs

Large companies, although the first kind to take advantage of IT outsourcing, have seen a decline in the effectiveness of taking their IT problems off site in comparison to mid-market businesses. One major factor in this is that the size of the company determines the needs of its IT departments, and many larger companies further compartmentalise the departments as part of their outsourcing strategy. Mid-market companies however, have a tendency to just overhaul the entire IT infrastructure in one go.

Splitting up their IT needs into the help desk, applications and then hardware, increases the cost of handing over control to IT outsourcing in the long run, although in the first instance it might seem cheaper. At each stage technicians from the outsourcing provider will have to come in, make an assessment and then action the new strategy rather than just create an all-encompassing one from the start.

A State of Transition

Another factor that has resulted in mid-market companies seeing an increase in cost effectiveness for outsourced IT is that they tend to be in a transitional state. Growth, acquisitions or even IPOs can result in excess strain on a company’s IT system. This leaves mid-market companies with the options to either pay for an upgrade and redesign the in house IT department, or use an outsourcing provider instead. Usually the latter option is the cheapest, and will be advantageous for the future.

What can an outsourcing provider like Acora offer mid-market companies? Check back soon to find out.

Key Ways IT Can Influence Enterprise Valuation

Over the years, the adoption and integration of IT in business has underscored its importance in the modern enterprise. While IT started as a back-office function, it has evolved to become a core operational functionality, much like finance and marketing, which increases efficiency and plays a significant role in maximizing the enterprise value. In fact, IT and companies like Acora are critical to the success of an organisation by ensuring routine operations and change management is handled smoothly.

Rather than just focus on the benefits that IT brings to the table, an organisation can effect IT benefits more strongly in the products and services it offers. Doing this requires developing options that allow customers to choose how they will exploit digital technology. For example, the data storage functionality can provide options that allow customers to choose between various recovery objectives and performance.

IT is essential to the strategy of an organisation looking to establish itself strongly in a globalised market. For such an organisation, effective use of IT can be the difference between strong and mediocre performance. Treating IT like a business means extending business knowledge to the IT staff, thus creating more business-savvy personnel. Doing so positions the IT department as crucial to the achievement of company objectives.

The Need for IT Strategy

Many organisations structure their operations and decisions around a business strategy. The business strategy lays down the overall goals of the company and how to achieve them. Likewise, it is prudent for an organisation to have an IT strategy. The importance of doing so it to ensure that the IT investment made is maximized to best effect and delivers value to the organisation.

Typically, many organisations have an IT department (headed by a senior manager) that is responsible for implementing IT. The complexity of the various technologies used, as well as the costs associated, bring up the need for clear strategy. The key to such strategy is to warrant that IT supports the strategic efforts of the organisation, has support of senior management delivers the functionalities that enable better service delivery.

Lack of a clear IT strategy means that the organisation is unable to gauge whether IT delivers in accordance to the overall objectives. Usually when an organisation is under pressure to deliver is where lack of IT strategy becomes crucial. The worst case scenario, however, is where an organisation does not update the IT strategy to keep up with changing business strategy. The result is wasted resources that would be best used in other areas of the business.

Proactive Risk Management

Changing business environment and increasing dependence on IT means that many businesses have to ensure their technology runs without hitches. Downtime and slow recovery are not expected in the modern organisation, thus bringing up the need for proactive approach in disaster recovery. In the event of disaster, the organisation should be prepared to ensure client-facing functionalities are not affected, something that comes with adequate preparation and investment in the right technology.

Reactive measures that respond after disaster or an event (like an audit) are not effective risk management practices, and typically don’t offer solutions that can help alleviate future issues.

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What is Enterprise Valuation?

The value of an enterprise is an indicator as to how the market attaches value to the organisation. The enterprise value (EV) is the aggregate value of the company, and provides a clear picture of the assets and liabilities held. The EV is a much more valid representation of a firm’s value than its market capitalisation.

Whether an organisation is large multinational or a small startup, enterprise valuation is important. There are a lot of factors considered when settling on the EV of a company, with many of them being financial aspects. However, with technology playing a big role in the structure and operation of many organisations, IT has to be considered in the valuation of a company.

Be sure to check out our next post in the series as we go into detail about the concept of enterprise valuation from an IT perspective.