We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is Infrastructure Outsourcing?

By Contel Bradford
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Infrastructure outsourcing is a subcontracting service in which the management of an organization’s Information Technology (IT) systems and applications is handled by a third party. While these services have become very popular in recent times, the concept of outsourcing is not entirely new. In fact, corporations such as EDS, IBM, and Unisys started the infrastructure outsourcing trend in the early 1990s by seizing full ownership of the employees and IT assets of client companies.

Management of a company’s IT infrastructure and applications is often done from a remote location, usually in the service provider’s data center. Some choose local facilities, while others elect to outsource offshore. In the typical arrangement, the contractor takes a number of proactive measures and remedial actions to ensure that all of the client’s IT assets will always be available to its customers. For most companies, this availability applies to more than just servers.

When entering an infrastructure outsourcing agreement, a company may also receive management of its network routers and switches, security mechanisms, desktops and peripherals, disk storage, and bandwidth. In an ideal environment, the service provider works with the customer to build a custom, scalable solution tailored for their needs. Because the contractor typically manages every aspect of the infrastructure, this type of agreement can free up the time a company needs to focus on its core initiatives, helping the organization dramatically increase its business efficiency.

In most cases, infrastructure outsourcing aims to the take the pain, confusion and cost complexities out of IT service provisioning for companies with limited, or no, dedicated IT resources. Even companies with an IT department in place can benefit tremendously from the opportunity to control costs and track where its financial resources are going, while obtaining the IT services the business requires. With the right solution, an organization has the potential to greatly simplify its infrastructure and reduce the cost of IT operations.

Infrastructure outsourcing can help accelerate the growth of a business by freeing up the time and internal resources that allows it to focus solely on its core competencies. This however, all depends on the service provider. Organizations that require any type of business process outsourcing are encouraged to seek out respectable contractors that have a proven track record in the industry, and only utilize the best in IT practices. Selecting a partner to entrust with infrastructure management is an important decision that can have a lasting impact on the business.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By backdraft — On Jun 08, 2011

I feel kind of ambivalent about this idea. Let me show you the two sides I'm thinking about.

On the one hand I can see why a company would want to outsource its IT. These departments are big, complicated, expensive and difficult to set up. If these services can be better handled by an established provider it might save significant amounts of money and lead to more effective services.

On the other hand, IT departments are important and linked very closely to the operation of a company. If all these services are outsourced, it is possible that they will become distant and unresponsive. There is the risk that they will fail to meet the needs of both the company and the companies clients.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.