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What is outtasking?

What is outtasking?

More organisations are hiring services to manage their ever-growing networks, but the costs - in dollars and loss of control - can be too high for all but the largest players. For many others, there's outtasking.

Outtasking lets an organisation decide which aspects of network management it wants to outsource. And unlike outsourcing, which often means layoffs, "with outtasking, it's more you're offloading management of some task that's hard or new or scary", said Kitty Weldon, a Yankee Group analyst.

Outtasking is done on a smaller scale than outsourcing, using multiple firms to perform specific tasks instead of having one large organisation take over. US organisations will spend $US2.6 billion on outtasking this year and $US3.5 billion next year. Much of the spending will be by medium-sized businesses with annual revenue of less than $US500 million.

According to John Fiore, CIO of US-based State Street, outtasking won't necessarily reduce costs. Its intent is to offload those things that are not core to the business onto other organisations so that internal staff can spend their time on value-added activities.

Often customers don't get the service levels they want, or they run the risk of not having any knowledge base if the relationship is abruptly terminated and they need to manage the outtasked functions themselves. There could also be the perception that the service is too costly.


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