Why it is so important to outsource your CMMS?
Tuesday 02 april 2019
In-House vs Outsourced CMMS
To have the proper team, whether you have it in-house or you outsource it, is key to make sure that the build solution will deliver the productivity gains and quality of service that your customers expect. But what is outsourcing exactly? Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally. Mclovr 2 states that outsourcing is being employed to achieve improvements across the organization. On the other hand, you could also build an in-house CMMS, which is developed by a team that works within the organization.
Outsourcing allows companies to focus more on their internal resources and gives them the possibility to focus on their core business. Campbell 1 shows that making full use of the external environment will lead to better service, lower cost, and a happy customer. DiRomauldo & Gurbaxani 3 are stating that it could significantly increase the delivered service and furthermore the acquisition of new technical skills and management competencies. External CMMS-specialists, such as Yuman, with more experience and knowledge, are better able to keep pace with new cloud technologies. Gómez et al. 4 prove that outsourcing your IT-maintenance system increases the service quality on the field.
The process of capturing and sharing technical repair knowledge in a searchable and adjustable system, linked to the CMMS-software creates another level of assurance. Meaning that all the knowledge will stay on the device as the technician captured the information. Aligned to this, Yuman provides a safe space for all the data to be gathered (stored in the cloud), assuring the involvement of technicians and managers. This, in the end, will lead to data-driven decision making within the company. Total alignment between the customer’s business needs and the outsourcing strategy of the provider is key to success. As the demand of each one of the customers is unique, the outsource provider needs to develop custom solutions that focus on achieving these specific requirements.
At an initial glance, maintaining an in-house software development seems to be just plagued with the monetary issue, but if you delve deeper, you will get to know that the development of an in-house software will lead to a plethora of issues to handle. Sharma 5 highlights three major problems: finding the right team, over expenses and the dependency. Even if you have the means to hire the right people, this process consumes a lot of time and effort. Every company wants the best developers to create their proper CMMS, getting in touch with the right people isn’t that simple. Furthermore, if you’re going for in-house development, you do not only need to recruit the adequate developers you also have to invest in a proper infrastructure to execute the entire process. The third major issue is the dependency on your in-house developers, your complete working process will depend on them. If the developers or one of them leaves or is fraught with some issues the entire development of the in-house CMMS will suffer.
Olive 6 tells that outsourcing your CMMS-system enables budget flexibility. It gives the opportunity to companies to only pay the services they need and only when they need them. It also reduces the need to hire and train specialized staff, bring in engineering expertise from the outside, and reduces capital expense, yielding better control of operating costs. The outsourcing arrangement can change as your maintenance needs change. It can increase the quality of your work and bring in the latest technology to gain a competitive advantage. Another interesting factor is the reduction of risk. When you develop software in your own company you don’t know if it will succeed. Hiring a whole team of developers to create this software is very costly. When you cooperate with an external software house you don’t incur such huge costs.
Hence Yuman focuses on the contact with the client. The continuous process of giving and receiving feedback from the various customers forms the backbone of Yuman. Thanks to its community of users, the application constantly benefits from improvements and the addition of new features to meet the evolving needs of our customers. We work in an open community where the input of our customers is crucial. Contrary, when you develop an in-house solution you won’t be able to receive continuous feedback and ideas from a large base of existing clients.
The specificity and complexity of Field Service
Gómez et al. 4 are showing that the management of the workers in the field service isn’t easy anymore. The situation tends to be more and more complex due to a larger number of interventions, the geographical spread of the clients and their increasing expectations. Agnihothri et al. 7 argue that resolution delay is a very important measure. This is defined as the time between the request for a service and the final solution delivered by the technician at the customer site. This measure gives an insight into the effectiveness of the company. Yuman is a company which can support this process by providing software which allows field service companies to manage their mobile workforce in a proper way. This CMMS-software, from the latest generation, is the ideal solution to facilitate the daily management process. The application can grant you specific data which lead to useful insights, like overall work volume, the location of jobs, jobs in progress, average delay, the total cost of a repair, and much more KPIs.
By the help of technology, organizations can achieve superior service productivity and customer satisfaction. Going in for in-house development might seem somehow beneficial in the beginning, but when you put things into action, there are more stumbling blocks than you anticipated. Outsourcing your CMMS to a specialist in the sector, like Yuman, will be beneficial to your business in the future. We believe that organizations can move to a new service productivity-customer satisfaction frontier by focusing on creating new service strategies whereby a suitable IT-system will be the key to face this transformation. Yuman offers an application which gives companies the opportunity to deal with these upcoming challenges. Give us the chance to show you by booking a free trial and start your digital transformation today!
- Campbell, J. D. (1995). Outsourcing in maintenance management: a valid alternative to self-provision Journal of Quality in Maintenance Engineering, 1(3), 18-24.
- McIvor, R. (2008). What is the right outsourcing strategy for your process? European management journal, 26(1), 24-34.
- DiRomauldo, A., & Gurbaxani, V. (1998). Strategic intent for IT outsourcing
- Gómez, J., Crespo, A., Moreu, P., Parra, C., & Díaz, V. G. (2009). Outsourcing maintenance in services providers. Safety, reliability and risk analysis: Theory, methods and applications, 829-837.
- Sharma, R. (2018, 10 augustus). In-House Software Development Team V/S Outsourced Software Development Team — Challenges &…. Consulted on 1/04/2019, from https://hackernoon.com/in-house-software-development-team-v-s-outsourced-software-development-team-challenges-2bf90630c6a9
- Olive, B. (2004). The benefits of maintenance outsourcing, from https://www.plantservices.com/articles/2004/159/
- Agnihothri, S., Sivasubramaniam, N., & Simmons, D. (2002). Leveraging technology to improve field service International Journal of Service Industry Management, 13(1), 47-68.