Outsourcing ICT should be embraced, not shunned, as businesses prepare for the impact of rapidly changing technology, according to Telstra CTO, Dr Hugh Bradlow.
He was speaking at the American Chamber of Commerce lunch in Sydney.
Bradlow addressed the concept of disruptive technology, that is, how the advancements in technology interrupt current planning processes and how businesses should respond.
He encouraged organisations to change their business models and consider outsourcing parts of their ICT to specialist companies.
“The way we did ICT in the 20th century is not the way we need to do it in the 21st century,” Bradlow said.
“Businesses need to start thinking about which aspect of their business are core in terms of ICT capabilities and look for opportunities to – dare I say the word – outsource those to organisation that specialise in it.”
Some outsourcing specialists have a comprehensive team of security staff to provide customers with peace of mind which is hard to replicate by an organisation internally, he said.
“Security threat is not proportional to the size of the organisation,” he said. “It is proportional to the threat factor which is basically determined by various national governments around the world [and criminal groups].”
According to Bradlow, companies that work in outsourcing, such as Telstra, can offer clients a cost-effective and more secure way of dealing with their ICT assets.
Telstra has a cloud computing product set called Network Computing Services for ICT outsourcing.
In IDC’s 2009 report on outsourcing and managed services, the Asia-Pacific market was beginning to grow again with the return of large-scale enterprise outsourcing.
Australia’s outsourcing market is already considered to be mature, according to Ovum.
While cost-cutting factors into the decision to outsource, services offered and capabilities of external companies managing the ICT asset are also valued qualities.