Outsourcing’s value discussed at ISACA conference

Manila, Philippines March 20, 2006… The importance of outsourcing and how to optimize its value was discussed by a top executive of ePLDT  during the recent 2006 Annual Conference of Information Systems Audit and Control Association (ISACA) with the theme “3-Peat: Playing the IT Governance Game.”

Helen T. Marquez, Chief Operating Officer of ePLDT, provided the delegates with an overview of outsourcing and gave insights on mitigating the risks and optimizing the value of this latest business trend.

“Outsourcing, in layman’s language, is something that you usually do but now ask a third party to do for you,” explained Marquez.  Though not entirely a new concept, it is now an acceptable trend in today’s market and has since become a thriving industry in the country. 

“A Dunn & Bradstreet study indicates that most organizations allocate about 25% of their budget to outsourcing,” Marquez shared.  “It has a host of financial and operational benefits that make it an outstanding option for business protection, consolidation and expansion,” she added.

Marquez said that outsourcing is an option best explored by companies with financial constraints due to regulatory policies and compliance, or those whose products have a fast life cycle.  However, while virtually any kind of service or company process can be outsourced, organizations should know and learn to mitigate the risks and maximize the benefits that come with outsourcing.

“Organizational support is very important,” said Marquez.  “There must be a validation of statement of work across the organization.”

Having a clear statement of work is also crucial for outsourcing to become a viable option.  “Organizations must define the strategic business objectives to the outsourcer for them to be able to deliver.  They have to define the service level objectives, guided by realistic goals,” stressed Marquez.

Organizations of course have to choose service providers that are reputable, capable and dependable, “since it becomes a virtual extension of the company in performing the function in behalf of the organization.”  

ePLDT, a member of the PLDT Group of Companies, has also been a top outsourced services provider for several years now. 

“Our portfolio of innovative products and services caters to a wide range of industries, and we have a huge base of successful implementations – from basic web hosting, outsourced contact center services, to full IT outsourcing,” shared Marquez. 

ePLDT also incorporates data and network components into its outsourced IT services.

While outsourcing has many benefits, as it enhances cash flow and allows companies to focus on their core competencies and have an expert external service provider to perform specific functions based on their capability and resources, many feel that the trend will render human resources as obsolete.  Marquez dispelled the notion, stressing, “It is not the worker that becomes obsolete, but rather his skills.  This is why an organization must also put in place a career plan that allows their employees to enhance themselves and build on adding capabilities that will complement their company’s new direction or objectives.”

Organized by the ISACA Manila Chapter, t he two-day event was also aimed at building on the success of the past conferences in promoting awareness and integration of IT Governance in organizations.  Other topics discussed were IT Security and Penetration Testing, Computer Forensics, eCommerce, Wireless Networks and Security Issues, and Business Continuity Management.