In the life sciences industry data center services, help desk and network are not typically the most frequently outsourced features. However, the perception of outsourcing is beginning to change, as more and more CIOs realize that the money they spend on infrastructure and daily operations need to be put to work in a more directly business-related way. NNIT has created a tool to calculate the potential savings of infrastructure outsourcing and offers a free workshop to clarify the opportunities.
For years, IT has been considered the platform for business solutions. And it still is. It is the basis, the dynamo, and the steady pulse. But today, IT is much more than that, and the IT role has genuinely changed. In the aftermath of a financial crisis with global reach, CIOs are facing demands for IT to produce direct business value.
“We see that CIOs are looking for ways to fund the continual digitization of the business, to shorten the road from concept to reality, and speed up the implementation of new IT concepts. Clearly, as a CIO, you need to challenge the habitual thinking and make the money on the IT budget work for you in new ways. Outsourcing of infrastructure is such a means,” says Torben Thorhauge, vice president at NNIT.
To determine the potential, NNIT has created a tool – the IO-calculator. By the use of specific parameters and metrics, such as revenue, number of employees, and industry benchmarks from Gartner, it is possible to calculate the potential savings when outsourcing parts of the IT infrastructure.
“For some companies the potential savings over five years can be up to 50,000,000 euros. On average, we see savings in the area of 20,000,000 euros; however, the cost savings potential depends on the size of your IT spend, regardless of the amount. Most companies will agree that there are more profitable ways to put that money to work than spending it on infrastructure and daily opera- tions. Ask any CIO if he or she can imagine alterna- tive ways to spend 20,000,000 - 50,000,000 euros,” says Torben Thorhauge.
“Outsourcing of infrastructure is a big decision, and in recognition of that, we offer a free work- shop where we go through the economics of outsourcing. We discuss the approach that fits the specific company, whether it is partial out- sourcing, multi-vendor sourcing, cloud services, etc. In our perspective, outsourcing is not only an economic choice, it also frees up internal resources to focus on developing the business and improving vital processes.”
The workshop provides an opportunity to inves- tigate the concrete and variable questions the life science company may have, and NNIT can elaborate on how the calculation is conducted. Naturally, the individual potential for IT cost savings and freeing up resources is also examined.
“It is the combination of the IO calculator and the workshop that creates the initial value for our customers. It is not enough to know that savings can be achieved. You need to trust that the outsourcing partner understands your business, the life sciences, and how to handle GxP require- ments, for example. And there are many other regulations under which the life sciences operate,” says Thorhauge.
Deciding whether or not to outsource IT infra- structure is complicated and many things need to be considered. According to Torben Thorhauge, the following items need to be considered: