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Commercial. Motor looks into the reasons why more and more businesses are turning to outsourcing for their IT needs.
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:aid Goo (la Ifhaulage is your core business, you've probably already considered outsourcing your vehicle supply and maintenance arrangements. Wherever you decide to turn, at least you've considered the question. But unless you're PC World or some such, buying and selling computers is not likely to be your core business
For today's business, whatever the discipline. IT is its lifeblood. Even though the day-to-day business is out on the road, a robust IT system will keep it moving. From storing customer contacts, records of transactions and communication, through to confidential I1R and financial information, IT is at the very heart of the haulage industry I .et's set the scene — it's a Monday morning, you've got a big presentation to make to a prospective client and securing their haulage contract will really bolster your business All you need to do is finish the presentation and get all the figures in order and you're on the home straight. You turn on your computer and.., nothing happens. IT infrastructure is a critical part of the operations of a haulage business In the past decade, email has completely taken over, largely replacing letter and the phone as primary tools of communication. We also store everything electronically — if it's on the server, it's (theoretically, at least) in a safe place. It can't go walkabout or be thrown away accidently. However, as a consequence, IT failure can have a massive impact on business productivity and profitability.
For example, just a couple of weeks ago, a story emerged that an IT upgrade at Tesco caused the company to lose £5m because a number of stores had to close while an error was fixed.
What starts off as a minor inconvenience because emails can't be accessed can quickly escalate to become business critical if you can't access requests for quotes, work schedules or invoices. In fact, in 2004, Microsoft estimated that small and medium-sized businesses lose an estimated £64bn every year because of IT downtime or systems failures.
Economic pressures
The reality is that economic pressures mean that most transport businesses run lean operations in terms of head count and, consequently, don't have dedicated IT support staff within the business Therefore, it's crucial that businesses don't isolate themselves and continue to have some sort of support network that will help sort out problems before they begin to have a detrimental impaci upon their business.
One solution that is seeing greater uptake by hauliers is the use of managed service providers — or outsourcing.
Not only does this save businesses from employing an IT specialist, but they can also benefit from the service provider's economies of scale. This basically translates as being able to access a wide range of IT services and expertise through a reduced investment because operating costs are shared across an entire customer base.
Such practices are also a well-established route to significant cost savings, which are achieved through not paying a premium for major IT problems, capital expenditure to upgrade old IT systems and enabling internal expertise to remain focused on core activities. It's the same principle as keeping your trucks regularly serviced. Without maintenance, problems can escalate and cause a complete breakdown.
A wealth of expertise
By turning to a managed service provider, transport businesses can access a vast wealth of expertise that will help improve processes and efficiency. From systems management, database management and 24/7 support and service desk, to hosting provision. IT security and network solutions, this means that businesses can be safe in the knowledge that their IT systems will not cause catastrophic failure; and with help 'on hand' to iron out issues, a business can continue to function.
Handing over such business-critical functions can be a scary prospect, and there is a great deal the transport sector can learn Ii in the experiences of the finance, insurance and retail sectors. In these industries, outsourcing is now standard practice, and it enables the businesses to focus on their core function without being distracted by IT niggles, while still benefiting from expertise and software developments that contribute to keep businesses competitive.
Cost-effective solution
The main thing that hauliers and operators should remember when choosing a managed service partner is that their expertise is IT, not transport, so it's important to find a partner that can meet your needs. Think basics. There is a bewildering array of options available, and all of your boxes must be ticked. For example, is the phone answered 9-5, or 24/7? In terms of hardware, does the service include callout? And parts? What about labour? Resolution times are far more important than response times. It's all well and good for a managed service provider to boast of quick response times, hut with no contractual guarantees on resolution, they are of little use.
IT is only going to get more important in the day-to-day running of a business, and with today's world meaning customers want instant replies, it's vital a haulage business is firing on all cylinders Having external support ensures a hassle-free and cost-effective way to meet these needs.