Driving business strategy by outsourcing
Hero Honda Motors Limited outsources a few IT infrastructure needs, and SR
Balasubramanian, Vice President Information Systems, believes outsourcing
can help improve efficiency or give strategic benefit to the organization, depending
on the extent of tasks outsourced.
The company decided to outsource all its routine tasks to an external service
provider organization. This would help the personnel concentrate on the main
The company also felt that an external agency could handle the day-to-day management
tasks much better than its own team.
Outsourcing at the company
The company has outsourced helpdesk, facilities management, and basic first-level
management of the network and data centre. Server performance management and
network management are performed by the internal staff.
Outsourcing of helpdesk services began four years ago, and
the services were extended to new business areas over the next two years. The
outsourcing service provider reports to an internal manager who takes care of
the infrastructure. A special SLA has been drawn for this relationship.
Specially designed workflow software logs all incoming calls and the system
generates performance reports, which helps Hero Honda measure performance as
specified by the SLA.
The benefits of the deal
- No increase in number of IT personnel in spite of increased business activity.
- IT staff need not come to work in shifts since the outsourcing solution
provider manages the data centre round the clock.
- The staff can focus on user requirements and deliver services to users
on time, since they no longer have to handle routine complaints.
- Internal users receive prompt attention through the outsourced helpdesk.
A recent survey of users showed a high degree of satisfaction.