Increasingly technology delivered from the Outside-In
Categories: outside-in strategy
IT has traditionally been a central function of the organisation and the enterprise IT group was responsible for delivering services, IT services to the organisation and those services were produced internally in various data centres and distributed over networks and so forth, all of this was run by the central IT organisation and they had a large infrastructure and a large fixed cost.
What has happened is that the whole need for a multifunctional organisation – a business organisation – has declined because we now see that many functions that used to be produced or supported internally within groups – things like payroll, HR, even finance transactions etc. – these things can now be purchased over the web at lower cost and higher quality than performing them internally so what is happening is that companies have begun to unbundle and they are putting more and more subsidiary activities out on the web and retaining only those activities internally which are the source of their value edit. So that is what you see happening. Companies are becoming more focused, more networked because they are bringing in more services from outside and those services are delivered not through some central IT organisation in general but over the web so a lot of these companies now are heavily dependent on the internet and so when we talk about Outside-In we are talking about that phenomenon where more and more things are being delivered outside in to the company from third parties providers – very often specialised providers – who exist on the internet.