“Only 8% of IT organizations are considered highly aligned and highly effective by their business stakeholders.” –Bain Consulting
It is vital for business enterprises to look into the re-design of their applications and processes from time-to-time because failing to do so creates a gap between the business and real world market scenario. Three main reasons can be attributed to the necessity of re-aligning business processes.
1. Alignment of IT with Business Goals – IT department is no longer a service; they are a critical part of the team that executes complex business strategies for the company. The IT team also provides the competitive advantage and differentiation in the marketplace for products. Failure to align IT with business goals largely impacts productivity and effectiveness of the business.
2. Disruptions in the Technology Landscape – With increasing technology related innovation happening at high rate, business leaders require faster leverage of technology innovation in order to consistently remain competitive and meet their business goals. With a wide range of options available, companies may find it complex to choose the right technology that needs to be supported, integrated, and managed. This also requires operations teams to thoroughly understand the need of the company and map it to the right technology.
3. Flexibility of IT Infrastructure – It is important for businesses to respond appropriately to changing market conditions. To achieve this, their IT departments will need to be flexible as well. Also, with the current economic background of unemployment, stagnant wages and continued pressure on the US dollar companies need to re-design their IT infrastructure in the most flexible manner possible, which may include provisions to support outsourcing as well.
In order to effectively overcome all these challenges and also create the most efficient domestic service delivery alternative, companies can choose to use the ‘Inshoring’ model. This is a ‘Lean Service Factory’ model that provides efficient service operations. It is based on service delivery frameworks that create integration and collaboration between business and IT and, works with efficient tools and solutions to accelerate time-to-value of service operations. There are service partners who offer Inshore services which can be executed in a short span of time.
The Inshoring approach provides risk mitigation from loss of competitive advantage, by ensuring sustainability of knowledge, as well as ongoing internal organization development by leveraging the power of domestic IT sourcing.