SQL SERVER – 10 Reasons for Database Outsourcing

10 Reasons for Database Outsourcing

While you may feel that your IT material is safe and handled effectively within your own company, these reasons may give you some perspective on why you may want to consider other options.

Cost Reduction – Perhaps the most popular reason to outsource your database is the overall reduction in cost that would benefit your company.  No longer do you have to pay people to check up and maintain your servers, verify that they have uninterrupted power supplies, and ensure their security from hackers.  By going with an IT company that does this exclusively, you can save money on your end because they make money by volume.

Bigger Can Mean Better – Larger IT outsourcing companies are experts at what they do; there’s a reason they have made it to the top of the data storage field.  Not only will they have the resources to back up your data, perhaps multiple times, but they do business by serving many clients, which meant they have the power and money to get the latest technology.

Newer Technology – Firms that specialize in storage can’t afford to let their systems go out of style or date because that could jeopardize their business.  Going with them means you won’t have to worry about constantly updating your systems.

Reduction in Liability – Turning over this task to an expert also means a lot less worrying on your part.  All you have to do is make sure you are operating within a solid contract that protects you in the case of data loss.  Agree to a contract that puts you ahead in the case of a loss and you can sleep soundly knowing that your data is safe.

Competition means Lower Prices Elsewhere as Well – Now that you are in a market where others are competing for your business, you’ll get to shop around and find the best deal in town.  In addition to the number one reason of lowering your overhead, competition also means that if you find you have gone with a company that doesn’t meet your needs you can switch.  Imagine making that mistake if you owned all your own equipment!

More Effective Communication – If your company runs a database that needs to be accessed by multiple points, it will be easier for others to access and probably be faster for them to access as well.  Once again a good contract is key, but in most cases you can get more bandwidth access for your money by outsourcing, than you could by providing your own database connection.

Better Security – On the other hand you will know your data is backed up by competition driven upgraded safeware.

Standardization – What if your resource manager suddenly quits or is fired?  Outsourcing virtually guarantees that your information will be stored in a standard way, accessible consistently and without fear of security leaks.

Cross-referencing with Third Party Information – In many cases it may be possible to have your information collated and cross-referenced with other information for a variety of needs.  Once again get a solid contract and fully understand your security requirements first.

Removal of Duplicate or Incorrect Data – A final way outsourcing can help your database is a common option many companies will offer, which is the examination of your data in various ways as it is transferred.  Think of this as your businesses opportunity to ‘clean house,’ and set out again with a fresh start.

This post was contributed by Claire Webber, who writes about the schools online. She welcomes your feedback at Claire.Webber1223 at gmail.com

Reference : Pinal Dave (http://blog.SQLAuthority.com)

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SQLAuthority News – Definition – Outsourcing, Offshoring, Nearshoring, Offshore Outsourcing

Outsourcing - Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider.

Offshoring - Offshoring describes the relocation by a company of a business process from one country to another – typically an operational process, such as manufacturing, or a supporting processes. Companies subcontracting in the same country would be outsourcing, but not offshoring.

Nearshoring - Nearshoring means sourcing service activities to a foreign, lower-wage country that is relatively close in distance or time zone (or both). Nearshoring is understood to mean that the business has reduced the complexity and risk of offshoring.

Offshore Outsourcing – Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured.

All the definitions are modified from original source of Wikipedia.

Reference : Pinal Dave (http://blog.SQLAuthority.com)

SQLAuthority News – TOP Downloads – Bookmark

Recently I have got many many request for SQL Server Interview Questions and Answers as well related articles. It seems many people are looking for Job or appearing for interview at this time of the year. I have included list of the my top downloads in side bar of the blog, still I receive many curious questions as side bar does not show up in RSS feed.

Please book mark this post for future reference.

SQL Server 2008 Interview Questions and Answers Download
SQL Server Management Studio Keyboard Shortcuts (SSMS Shortcuts) Download
SQL Server 2008 Certification Path Complete Download
SQL Server Cheat Sheet Download
SQL Server Database Coding Standards and Guidelines Complete List Download

Reference : Pinal Dave (http://blog.SQLAuthority.com)

SQLAuthority News – Top 10 Tips for Successful Software Outsourcing

Few days ago, I wrote article about SQLAuthority Author Visit – IT Outsourcing to India – Top 10 Reasons Companies Outsource. I received quite a few emails regarding this article. I was really impressed that how much vendors care about their reputation and their client. I received so many requests from my blog readers who are interested in learning how to be successful at Software Outsourcing. I decided to write top 10 tips for the same. I have not described them in depth as they are pretty self explanatory.

  1. Define the scope of project clearly and as much as detail it can be.
  2. Define the schedule for project and expected milestones.
  3. Look for the domain knowledge experience in service provider.
  4. Think outsourcing as resource rather then cost saving tool.
  5. Review portfolios and samples as well as references.
  6. Start with small or medium size project which can justify the service providers expertize.
  7. Define the ownership of the work before project starts.
  8. Always plan for project maintenance and after project support.
  9. Pay regularly and swiftly when service provider reaches pre-defined milestone on time.
  10. Always ask for legal agreement and knowledge transfer documentation.

These are basic top 10 tips one should keep in mind when starting software outsourcing. If you have any more tips please add them here as comment. I am very interested to know what all of you think about this topic.

Reference : Pinal Dave (http://blog.SQLAuthority.com)

SQLAuthority Author Visit – IT Outsourcing to India – Top 10 Reasons Companies Outsource

Yesterday I had meeting with few of the leading outsourcing companies in Ahmedabad, India. Regular readers of this blog knows that I am currently in India handling large scale outsourcing assignment. My responsibilities includes managing application development, system architecture and database architecture. The purpose of meeting was to exchange the views and learn methodologies from one another regarding how to provide quality service to offshore clients.

There were about 10-15 Sr. Managers from different outsourcing company. The conversation was excellent and we all felt that we have learned a lot from each other. Two major things discussed were quality of products and quality of developers. There are many reason to outsource however the major reason to outsource any product is “get the product done (completed)”. Managers were concerned about so many online rip-off websites clamming as large scale outsourcing companies and listing fake projects. It is common for rip-off companies to claim big and provide nothing. It is very important and crucial for businesses to not to be involved with them.

Outsourcing is about trust, collaboration and success. Helping other countries in need has been always the course of mankind, outsourcing is nothing different then that. With information technology and process improvements increasing the complexity, costs and skills required to accomplish routine tasks as well as challenging complex tasks, companies are outsourcing such tasks to providers who have the expertise to perform them at lower costs , with greater value and quality outcome.

There were many things discussed, I will gradually write them on this blog. After meeting many good industry leaders I was very pleased and felt satisfied that we all care about outsourcing and reputation of the country. One proposal I had made in meeting was to write article about how to find rip-off companies. We will be discussing that in the next meeting. As this was first meeting we discussed Top 10 Reasons Companies Outsource Source: The Outsourcing Institute Membership, 1998

If you are interested in joining this meeting as well as finding good outsourcing company, send me email and I will forward your email to right person. There were few independent contrasters who were available to hire and some senior managers of Multi National Companies (MNC) available in meeting only for advise and discussion. At the end experienced well shared and meeting ended with food in nearby restaurant.

Following article is taken from Survey of Current and Potential Outsourcing End-Users The Outsourcing Institute Membership, 1998

1) Accelerate re engineering benefits
Re engineering aims for dramatic improvements in critical measures of performance such as cost, quality, service and speed. But the need to increase efficiency can come into direct conflict with the need to invest in core business. As non-core internal functions are continually put on the back burner, systems become less efficient and less productive. By outsourcing a non-core function to a world class provider, the organization can begin to see the benefits of re engineering.

2) Access to world class capabilities
World class providers make extensive investments in technology,methodologies, and people. They gain expertise by working with many clients facing similar challenges. This combination of specialization and expertise gives customers a competitive advantage and helps them avoid the cost of chasing technology and training. In addition,there are better career opportunities for personnel who transition to the outsourcing provider.

3) Cash infusion
Outsourcing often involves the transfer of assets from the customer to the provider. Equipment, facilities,vehicles and licenses used in the current operations have value and are sold to the vendor. The vendor then uses these assets to provide services back to the client. Depending on the value of the assets involved, this sale may result in a significant cash payment to the customer.

When these assets are sold to the vendor,they are typically sold at book value. The book value can be higher than the market value. In these cases, the difference between the two actually represents a loan from the vendor to the client which is repaid in the price of the services over the life of the contract.

4) Free resources for other purposes
Every organization has limits on the resources available to it. Outsourcing permits an organization to redirect its resources, most often people resources, from non core activities toward activities which serve the customer. The organization can redirect these people or at least the staff slots they represent on to greater value adding activities. People whose energies are currently focused internally can now be focused externally – on the customer.

5) Function difficult to manage or out of control
Outsourcing is certainly one option for addressing this problem. It is critical to remember that outsourcing doesn’t mean abdication of management responsibility nor does it work well as a knee jerk reaction by a company in trouble.

When a function is viewed as difficult to manage or out of control, the organization needs to examine the underlying causes. If the requirements expectations or needed resources are not clearly understood, then outsourcing won’t improve the situation; it may in fact exacerbate it. If the organization doesn’t understand its own requirements, it won’t be able to communicate them to an outside provider.

6) Improve company focus
Outsourcing lets a company focus on its core business by having operational functions assumed by an outside expert. Freed from devoting energy to areas that are not in its expertise, the company can focus its resources on meeting its customers’ needs.

7) Make capital funds available
There is tremendous competition within most organizations for capital funds. Deciding where to invest these funds is one of the most important decisions that senior management makes. It is often hard to justify non-core capital investments when areas more directly related to producing a product or providing a service compete for the same money.

Outsourcing can reduce the need to invest capital funds in non-core business functions. Instead of acquiring the resources through capital expenditures, they are contracted for on an “as used” operational expense basis. Outsourcing can also improve certain financial measurements of the firm by eliminating the need to show return on equity from capital investments in non core areas.

8) Reduce operating costs
Companies that try to do everything themselves may incur vastly higher research, development, marketing and deployment expenses, all of which are passed on to the customer. An outside provider’s lower cost structure, which may be the result of a greater economy of scale or other advantage based on specialization, reduces a company’s operating costs and increases its competitive advantage.

9) Reduce risk
Tremendous risks are associated with the investments an organization makes. Markets, competition, government regulations, financial conditions and technologies all change extremely quickly. Keeping up with these changes, especially those in which the next generation requires a significant investment, is very risky.

Outsourcing providers make investments on behalf of many clients, not just one. Shared investment spreads risk, and significantly reduces the risk born by a single company.

10) Resources not available internally
Companies outsource because they do not have access to the required resources within the company. Outsourcing is a viable alternative to building the needed capability from the ground. New organizations, spin-offs, or companies expanding into new geography or new technology should consider the benefits of outsourcing from the very start.

Reference : Pinal Dave (http://blog.SQLAuthority.com) , Survey of Current and potential outsourcing End-Users The Outsourcing Institute Membership, 1998