Reducing the Cost of IT Services

Michael Vizard
Slide Show

Why IT Projects Fail

Early warning signs to help you recognize and address problems before catastrophic failure occurs.

After the cost of IT labor, the most expensive part of enterprise IT is the cost of IT services.

So in these tough economic times, it would stand to reason that IT organizations would want to especially focus on reducing the costs of those services. Unfortunately, that can be a challenge because the typical enterprise IT project usually requires the skillsets of multiple IT service providers. So not only is it costly to hire all those firms, there's also a cost associated with finding and managing them all.

The way customers deal with that issue is to hire a general contractor, who then goes out and hires all the subcontractors. But IQ Tech Pros CEO Kashif Aftab argues that it can be an expensive proposition because companies such as IBM, Accenture and others, which usually play the role of the general contractor, are marking up the cost of the project in return for their project management services.

Aftab argues that there is a more efficient approach to managing IT services. IQ Tech Pros is recruiting IT services companies to participate in an IT services network. The idea is to give customers a central location through which they can easily find the right IT services expertise they need without having to pay someone else to manage that process. IQ Tech Pros certifies the expertise of all the IT services companies participating in the network, and Aftab says that customers using the network will be able to cut their IT services costs because they will no longer need an expensive general contractor to manage the IT services process.

In effect, Aftab is saying that for customers who want to manage their own IT projects, the IQ Tech Pro network, which has 15,000 members, creates an efficient way to find and manage IT services talent.

IQ Tech Pros isn't the first organization that has tried to organize consultants, service providers and resellers into a more efficient system. But given the current state of the economy, IQ Tech Pros may be coming along at the right time. Customers are looking to cut costs any way they can. And IT service providers for their mutual benefit are in the mood to cooperate with each other. And many of them are tired of having to share profits with general contractors that do little more than take a large piece of the action for the privilege of managing the project. By working with IQ Tech Pros, they can establish a more direct relationship with the customers that should prove more profitable to them, while reducing the overall cost of the project.

It remains to be seen whether IQ Tech Pros will succeed in accomplishing that ambitious effort. But one thing that is for certain is that when it comes to reducing the cost of IT services, customers will be listening.

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