Feeds

Firms should beware e-business ‘black hole’

Outsource instead, suggests outsourcing firm

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Firms which choose to run and manage their e-business systems and infrastructure in house are throwing resources down an IT "black hole", according to new research out today.

E-business specialist PSINet Europe found a staggering 115 million person hours of working time would be wasted across Europe dealing with an activity related to internal hosting - 23 times more hours than were needed to organise and run the Sydney Olympics in 2000.

According to the research, UK firms alone would lose an incredible 31 million man hours in 2003 because they were underestimating the amount of time, capital, equipment, services, planning and management required to keep their infrastructure on track.

The research found, rather than being a costly undertaking for companies, targeted investment in outsourcing of infrastructure could have considerable benefit and firms did not need to make a stark choice between e-business based competitiveness and cost-cutting.

Author of the study, Scott Smith, said the days of running your e-business infrastructure on a shoe string were long gone along with the ability of businesses to survive by cobbling together systems with minimal staff, equipment and know-how.

"Even if a single company believes it is technically feasible to do it themselves, in almost every case the 'hidden costs' mean it does not make economic sense.

"Outsourcing is not in itself a silver bullet - but now more than ever it represents a cost-effective way of getting additional value from a company's human and technology assets while extending reach and capabilities," he said.

And Stephen Scott, UK Managing Director for PSINet Europe, said the black hole the research had identified should act as a warning shot across the bows of every business looking to save money or cut costs through bringing their IT infrastructure in house.

"Firms are rightly looking for ways to unlock value from their ICT spend, but too often the management and complexity of in-sourcing is ignored in the decision-making process, only to rise up and hit them later on," he warned. ®

Copyright © 2003,

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.