The question of whether to turn over the desktop support function to a service provider is critical and surprisingly complicated. Our research shows a strong cost advantage of outsourcing the desktop support function, but other factors, including increased automation and self-service assistance, can change the equation, potentially making it less cost-effective. IT leaders must navigate the fine line between cost efficiency and exceptional service delivery.
As shown in Figure 1 from our full report, Desktop Support Outsourcing Trends and Customer Experience, IT organizations experience a high level of cost success with desktop support outsourcing. Compare this to the service success, which is low. Business leaders appear to be prioritizing cost over service for desktop support outsourcing.
Desktop support services may involve both hands-on and remote activities. Hardware installation and repairs often call for on-site personnel, while remote services are delivered via Level 2 telephone support or desktop sharing. Remote infrastructure management technology has been contributing to downward pressure on prices because it obviates the need for on-site personnel and allows service desk staff to address many desktops remotely. Web client applications and cloud solutions have reduced application-related costs in some cases. It has also opened the door to offshore service providers.
“New technology is changing the cost for desktop support and forcing IT organizations to re-evaluate,” said Waynelle John, research analyst for Avasant Research, based in Los Angeles. “Challenges with service quality and growing in-house automation are also making leaders take a second look.”
Organizations with limited resources may outsource less strategic functions so employees can be redirected to core revenue-generating business activities. This allows the enterprise to still benefit from high-quality support while cutting costs. Outsourcing also allows the organization to only pay for the service they need. With this, paying more in-house agents to meet growing demands is not a cause for concern. But amid these cost-cutting efforts, the service experience has continued to suffer.
As more desktop applications move to the cloud, the demand for desktop service visits decreases, shifting some support to SaaS providers. This can potentially decrease the outsourcing demand. Furthermore, in-house desktop support, aided by automation and self-service options, streamlines processes and strengthens the relationship between business and IT. In this case, outsourcing can lead to a loss of internal expertise, hinder service customization, and disrupt the connection between business and IT.
Still, despite the many reasons not to outsource desktop support, the high-cost success makes it worth looking into this practice—at least for now. Many organizations are trying to focus on mission-critical functions, and while PCs and laptops are major business tools, they are not generally perceived as a focus for innovation or competitive differentiation. Therefore, PC support should be high on the list of outsourcing opportunities.
The full study examines adoption trends in desktop support outsourcing to help IT executives understand their options. We measure desktop support outsourcing activity through outsourcing frequency, outsourcing amount (level), outsourcing cost experience, and outsourcing service experience. We also compare desktop support outsourcing frequency and level by organization size and examine the sectors most likely to outsource the desktop support function. Finally, the report concludes with factors to consider when evaluating options for outsourcing this function.
This Research Byte is based on our report on this subject, Desktop Support Outsourcing Trends and Customer Experience. The full report is available at no charge for subscribers, or it may be purchased by non-subscribers directly from our website (click for pricing).
Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.
Login to get free content each month and build your personal library at Avasant.com
