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Questions to Ask When Purchasing Technology

Written by Meredith Weiss

University of North Carolina at Chapel Hill

MBA in MIS and PH.D Candidate ============================================

So you are considering purchasing technology equipment for your new small business.  Before you do, I have one question for you – WHY?

Arguably, every small business today needs a solid technology infrastructure, but small businesses often make the mistake of looking to a close competitor and “copying” them.  Just because you are not a “big fish” yet, it is never too early to act like one. 

Take a look at your strategic plan.  Not the one for technology, the one for your business.  What are your core competencies?  Is technology infrastructure one of them?  If not, I have one word for you -- OUTSOURCE.

No, outsource is not a dirty word and it does not necessarily mean out-of-the-country source.  It means, find an expert and use their expertise.  It is most likely that you will not be able to replicate their expertise in-house, and the expense you take on trying to do so will distract you from funding and supporting your core competencies.

What costs should I consider when deciding to provide IT services in-house?

• Staffing
• Hardware
• Software
• Telecommunications
• Space
• Utilities
• Security
• Supplies
• Administrative costs
• Over-head
• End-user support
• Training
• Turn-over
• Staff development
• Emergency response costs

These are many of the costs associated with providing support in-house. You can use this list to begin to conduct a cost/benefit analysis of outsourcing.  I believe you would be hard pressed to be able to run an efficient, reliable system less expensively than a company that specializes in this area.

How do I find an expert?  What do I look for in an expert?

• Dependability
• Accessibility
• Security
• Backup ability
• Longevity
• Cost
• Location

Clearly list system requirements and support needs before speaking with any outsourcing company.  Once your needs have been identified, seek recommendations from others who have outsourced operations.  The top priorities in outsourcing must be customer service, reliability and security.  Don’t pay for items that you do not need and never compromise on your top priorities.

Remember, you don’t need to recreate the wheel, but make sure you are in the correct car.