Disaster – An impact over In-house Management versus Management Outsourced
1. DISASTER – AN IMPACT OVER IN-HOUSE
MANAGEMENT VERSUS MANAGEMENT OUTSOURCED
PRESENTED BY: KUMAR ABHISHEK
2. OUTSOURCING
• If you hire an outside consultant, service provider, or agency to manage a portion
of your business, that is outsourcing.
• Here are some reasons to outsource.
• Specialized equipment
• Seasonal needs
• Limited needs
• Temporary needs
3. INSOURCING
• If you hire inside your own organization to manage a portion of your business,
that is insourcing.
• Here are some benefits.
• building your own team for an operational function is that you control the provider’s
time, activity, and quality.
• Most companies try to maintain, in-house, the core operations that they believe will
differentiate their business.
• Most companies end up with a hybrid model. You’ll likely have marketing experts in-
house and retain agencies when necessary.
4. IMPACT OF DISASTER OVER OUTSOURCING AND
INSOURCING
• In disaster recovery facility site selection, a key consideration is whether to
outsource, maintain your site in-house or partner with others on disaster recovery
strategy.
• So you are faced with a few choices for a disaster recovery site, three possibilities
available
• Do it yourself
• Outsource to a disaster recovery provider
• Collaborate with a partner
5. LET’S TAKE AN EXAMPLE
• In the IT industry how many data centers are sufficient for disaster recovery? If
you have existing data center facilities, make sure to explore these considerations.
• Does the existing data center facility meet disaster recovery site resiliency and
reliability needs?
• Does the existing facility have enough power and cooling to meet the disaster
recovery needs?
• Is the existing facility located far enough away from the production data center to be
safe from disaster risks in the area?
• Do your business continuity plan demand production service levels when operating at
the recovery site or can the business operate on reduced IT service levels?
6. IF YOU HAVE DECIDED TO OUTSOURCE YOUR DISASTER RECOVERY
SOLUTION, HERE ARE SOME PROVIDER REQUIREMENTS YOU MUST
CONSIDER
• Can they produce a reference list of their existing disaster recovery clients whom
you can contact?
• Does the disaster recovery firm engage in over-booking?
• Does the disaster recovery outsourcer encourage and utilize virtual infrastructure?
7. BEFORE EMBARKING ON SUCH A PARTNERSHIP, HERE ARE
SOME REQUIREMENTS FOR SUCCESS
• Shared disaster recovery facilities work best between partners in the same
industry. This makes it easier to maintain the integrity of regulatory requirements
and audits.
• Both partners must have nearly identical security and operational governance of
their production data centers.
• Clear contractual terms are a requirement for sharing a disaster recovery facility
sharing. Employees come and go, so everything must be spelled out in well-
defined contracts.
8. BEFORE EMBARKING ON SUCH A PARTNERSHIP, HERE ARE
SOME REQUIREMENTS FOR SUCCESS
• Supplier/consumer partnerships are beginning to grow in popularity, but the
consumer may also be working with the supplier's competitor a condition that
may spell too much risk for a disaster recovery partnership.
• Lastly, if you have a disaster recovery facility in place already, you should review
its applicability to your business continuity requirements on an annual basis. You
may find that making a change can improve your service levels, reduce your costs
or both. In today's economic environment, attaining cost savings through a
different disaster recovery solution from the one you currently use is in order.
Your outsourcing candidate should be able to supply at least five good references. Any hesitancy or excuses in responding to this request are a red flag. Furthermore, the references should either be from varied vertical markets or from your same vertical market.
The disaster recovery outsourcing firm should clearly state their prices, service levels, and their penalties should they fail to deliver in their offering to you. Penalties usually occur in the form of fee rebates or credits.
Should a wide scale disaster hit your region, contracting with a disaster recovery firm that engages in over-booking their facilities may leave you standing when the music stops. Some disaster recovery providers refuse to over-book so that they can guarantee service to their clients but peace-of-mind comes at greater cost. Be aware that the old saying still applies: "you get what you pay for." Firms that over-book their disaster recovery facilities tend to be substantially less expensive. On the other hand, a lower cost over-booking disaster recovery provider may be an option in a region that has very low risk of wide scale disasters.
Virtualization both speeds disaster recovery and lowers overall costs. Most are just now getting on the virtualization bandwagon, so check how long the outsourcer has been implementing virtualization technologies and ask for virtualized reference customers. They should have two or more years of experience with virtualized disaster recovery.