XaaS vs Outsourcing: It’s a theme brought up at alt-c this week and something that most people are confused about: Outsourcing and everything-as-a-service XaaS are not the same things.
They may be used to achieve the same results but when you compare the intent of each they clearly show their differences.
Whats the difference between XaaS and Outsourcing?
XaaS is granular, focused and can be applied surgically to key areas that need attention. Outsourcing is expensive to negotiate and apply. It takes time, introduces additional cost of purchase and sale and implies a reduction in flexibility – details are lost or hidden in contractural obligations, service level agreements, the transfer of assets, liabilities and risk.
- Outsourcing tends to apply to larger elements of business. Whole teams or departments moved. The impact to IT itself is structurally significant.
- XaaS tends to apply to surgical strikes. Moving clearly defined elements to a 3rd party. The impact to IT is small and can be managed over time.
Which is best? XaaS vs Outsourcing
That’s going to depend on your organisation, neither may be suitable. To help you decide in the XaaS vs Outsourcing debate, think about the following Top 6 reasons…
Top 6 reasons to go XaaS
- Focus on business need
- Speed and Flexibility
- Standardised, transparent pricing
- Access to global high skill resource pools
- Improvement in image
- Increase in competitiveness
Top 6 reasons to Outsource
- Pass risk/staff to 3rd party
- Create a structured framework of IT services
- Focus on core business
- Long term stability
- Access global high skill resource pools
- Known cost framework