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What IT Outsourcing Customers Want

September 3, 2014  |  Written by Daniel Wolfe, Vice President, IT & Process Management

The world of IT outsourcing is a fickle one. On the one hand, IT outsourcing has the ability to be a tremendous value-add for companies with the right provider. But on the other hand, the outsourcing provider is often the first one to get the boot if the outsourcing client isn’t satisfied.

That sentiment is one that’s backed up by a recent study called the 2014 State of Outsourcing, which was conducted by outsourcing analyst firm HfS Research in conjunction with KPMG.

Here are a few key findings from the survey of 312 companies (via CIO.com):

  • 37 percent of outsourcing customers are likely to fire their providers if they fail to meet compliance requirements
  • 28 percent may do so if the provider can't provide greater flexibility to achieve scale
  • 27 percent will show suppliers the door if they don't lower operating costs
  • 22 percent will consider moving on if their providers can't deliver better standardized or transformed processes

HfS Research president Phil Fersht noted that “This is no longer about achieving significant cost reduction targets and getting basic tactical operations functional; it is about moving clients into a future state that is much more effective than the current one.” In other words, outsourcing clients are now looking for more than just cost-savings—they’re looking for strategic partners that can help them move their business forward.

Not everything that we do here at Telx is strictly IT Outsourcing. Data center colocation, though outsourced and part of IT, is less congruent with typical definitions of IT outsourcing than, say, IaaS services through Telx and Peak, or our other cloud and connectivity services. The latter two fall more in line with what the industry today defines as IT outsourcing than some of our other offerings, but all could at least be considered elements of IT outsourcing, if nothing else.

Which brings us to our important point: whether for data center colocation or for IaaS, a partnership with Telx is about more than just cost-savings. A big point that we like to drive home is our capacity; with 100% reliability, 100% on-time deployment, and lifecycle scalability, we’re equipped to support your business from ideation through maturity. Not only do we meet the requirements of the key findings (compliance requirements, lowered operating costs et al.)—our nimble, agile business model allows us to become a valued partner instead of just a normal outsourcing solution.

Our team is closely connected and intimately knowledgeable about what it takes to help businesses succeed. We are committed to providing the best, most cutting-edge and reliable data centers around. And perhaps most importantly, we work to deeply understand your business processes, applications, technology, and equipment to offer an always-on, personalized solution.

Our capabilities here at Telx transcend the cost-savings model and move well into the model of strategic partnership in the realm of IT outsourcing. If you’d like to learn more about a partnership with Telx and how we can help your business move forward, feel free to reach out to us via the contact page of our site, or by Facebook or Twitter.

Daniel Wolfe

Daniel Wolfe

Vice President, IT & Process Management

Daniel Wolfe is responsible for business applications, IT infrastructure, and process improvement programs at Telx.  He has directed IT programs at global organizations for over 13 years, focusing on ERP and Web 2.0 applications in dynamic, entrepreneurial environments.  Prior to Telx, Dan led IT and process initiatives at growth companies across diverse industries including Odyssey Logistics, a business process outsourcing provider, and Supresta, a global specialty chemicals manufacturer.  He holds a BA from SUNY Geneseo and an MSW in Non Profit Administration from Yeshiva University.