SAN MATEO (02/14/2000) - In theory, implementing technology strategies via external service providers is a good one. Controlling costs, reducing infrastructure requirements, and pushing recruiting challenges outside of your organization are all obvious benefits.
However, reality is another story -- large enterprises are not taking to the service provider model as quickly as some expected. E-mails from many InfoWorld readers on the topic of services show a common theme: Companies are leery of placing mission-critical data and applications with outsiders.
Research from the Gartner Group Inc. on services shows a similar trend in that the majority (80 percent) of service-based implementations expected this year are likely to support nonmission-critical functions. Moreover, some 70 percent of service-based implementations will result from requests at small to midsize companies. The research does note growth in high-end mission-critical service usage by 2004. However, this year many enterprises (roughly 30 percent) will not be satisfied with their service experience.
Your e-mail comments and this research both show that large organizations are indeed moving slowly toward adopting service-based functions. I'm not generally skeptical, but I agree that handling mission-critical functions via services requires caution.
Service providers that target large enterprises will need to place much greater emphasis on how they will secure corporate data. In addition, companies with large-scale e-business initiatives need service providers to detail exactly what steps they will take to ensure the online privacy of customers and suppliers.
So you may not be ready to move critical business functions to a service-based approach. However, some service providers are taking unique or interesting approaches to corporate problem-solving, and those are worth a look.
A relatively new service from ITsquare.com Inc. (www.itsquare.com) aims to help companies simplify the process of outsourcing application development.
Customers post project requirements with ITsquare.com and available vendors can bid on the project.
ITsquare.com officials indicated that they monitor the quality and performance of those providing the development resources. In addition to linking companies with outside resources, ITsquare.com facilitates communication throughout the project.
Many companies are taking up the challenge of expanding their Web presences to reach a global audience. A service provided by Adero Inc. (www.adero.com) aims to solve one portion of the globalization problem by increasing bandwidth.
Adero can route your Web traffic across their network of servers that support nearly "99 percent of the worldwide online audience," according to Adero officials. The idea is to optimally route Web traffic regardless of end-user location. The company manages connections, line quality, and volume.
What if your challenge is to find ways to increase corporate communications and speed up workflow across a distributed organization? WebEx Meeting Center Services, which I recently reviewed, offers a good approach to increasing communication and collaboration.
The WebEx service (www.webex.com) supports online discussions, document sharing and editing, application sharing, and Web touring for a fixed monthly fee. This service is good for those who don't want to maintain in-house collaboration functions.
A service is available for nearly any business problem you might need to solve.
The Web has introduced some new wrinkles to the outsourcing picture; namely, security and privacy. But Web-based services also hold the promise of improving communications, performance, and more at a commoditized price.
A lot of the concerns with moving to a service-based approach can be solved via low-tech means. Get beyond the sales pitch: Ask a lot of questions, get a trial period, and develop a detailed service-level agreement and a concise contract that protects your interests.
What methods are you using to find the best service providers? Write me at maggie_biggs@infoworld.com.
Maggie Biggs is director of the InfoWorld Test Center. She has more than 15 years of strategic and tactical IT experience in the financial sector.