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OVERVIEW

Operational cost savings, enhanced value-add from better utilization of management resources, greater predictability of IT expenses

In a business environment facing rapid market change and economic volatility in and outside of Korea, management is under constant pressure to seek continuous change and innovation within the constraints of limited management resources. While managers appreciate the need for costs savings and efficiency gains when deploying existing resources, many have a hard time striking a balance between cost savings vs. responding quickly to new market changes or threats while also exploring new opportunities. That’s why more managers are becoming increasingly dependent on in-house information systems, which play a key role in the discovery and circulation of business management data. Since existing information systems require continuous input of human resources for maintenance, modifications, improvements, training, etc., relevant costs have been on the rise while IT budgets struggle to keep up. The dilemma of the CIO, where he/she cannot take full advantage of information technologies despite being fully aware of their benefits in boosting efficiency and costs savings, may be resolved by using outsourcing services. IT outsourcing delivers optimization, simplification, and stabilization of enterprise information systems by achieving an economy of scale while securing a solid technological foundation for the company, which in turn, drives down costs, something that had previously presented a key challenge for in-house IT systems operations. Outsourcing helps free up management resources, which can then be put to better use in more strategic and high value-add initiatives, giving management room to focus on the more direct drivers of company growth. In addition, outsourcing helps acquire a more advanced information system infrastructure, which will enable more optimal future investments in IT while enabling greater predictability of IT costs.