Outsourcing the fast speed of two-speed IT

Published: July 15, 2016 2 min. read
Svitla Team
By Svitla Team
Managed Operations
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Many companies have embarked on a digital transformation of their business in an effort to increase sales and support customers through online systems, apps and social media. IT organizations are encouraged to develop a “fast” or “second gear” mindset capable of operating at internet speed and being focused on a digital transformation. Carrying out this shift while simultaneously supporting legacy systems that cannot be changed as rapidly is a tall order for many IT organizations. In-house IT departments must either learn to reinvent themselves so they can adapt to the fast-paced evolution of technology or outsource these efforts to quickly gain the expertise needed. IT outsourcing, or more specifically, outsourcing the creation of innovative and dynamic software apps and systems, is a reliable way for companies to ramp up a development team for the required fast gear.

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According to McKinsey & Company, a digital enterprise architecture needs to include several elements to facilitate digital transformation:

  • Two-speed IT architecture – as described here.
  • Instant cross-channel deployment of functionality - using micro services for small features or functionality that are deployed in minutes or hours.Zero downtime – using test-driven development (TDD), continuous integration and deployment (CI/CD) that enable the update of individual pieces of functionality without disrupting the entire system.
  • Real-time data analytics - analytics that become an integral part of the app and not just a stand-alone process.
  • Easy process configuration - business users are able to change features without custom coding.
  • Automated scaling of IT platforms - scalability across redundant private and public-cloud environments to eliminate potential slowdowns and downtime.
  • Secure architecture - cybersecurity as an integral part of the overall application.

Outsourcing provides these elements and accelerates the transition to a two-speed model. The agile culture required to think of software as a product, created in a factory-like manner with continuous improvement is achieved much more easily in an outsourced software development shop that is an expert at product development, rather than building a “fast” IT team and culture in a historically “slow” IT organization.

Written by
Mark Schadt
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FAQ

What is two-speed IT?

Two-speed IT is defined as an operating model in which an organization runs two parallel modes of IT, a digital layer iterating at internet speed for new customer-facing features and a ‘slow’ layer maintaining stable, hard-to-change legacy systems. Typically, the fast gear uses microservices, CI/CD, TDD, real-time analytics, and zero-downtime deployments so that updates can be shipped within minutes or hours. The slow gear provides reliability, plus compliance and core transactional integrity. Most firms use outsourcing to quickly stand up the fast gear and the agile product culture required, while the internal team continues to safeguard and evolve legacy platforms.

What is speed in information technology?

In IT, speed means how fast teams can ship, deploy, and iterate software and infrastructure changes without breaking stuff. Enabled by things like microservices, CI/CD, TDD, zero-downtime releases, and clouds that auto-scale to let small bits go live in minutes or hours. Also includes cross-channel rollout at the same time, plus real-time analytics built right into apps to inform improvements right away. The aim is to deliver fast with security, reliability, and compliance of core systems.

What is agility in a business?

Agility in a business is the ability to change or respond to market changes and changes made by customers in the market with small, frequent improvements that never disturb core operations. This method of working relies on product-centric thinking, cross-functional teams, and some elements such as continuous integration and deployment, test-driven development, and zero-downtime releases. Real-time analytics is something that agile businesses embed to inform decisions and also enable business users to adjust features via easy configuration, resulting in faster time-to-value while maintaining reliability, security, and compliance.

How does two-speed IT benefit organizations?

Two-speed IT gives organizations the opportunity to keep their legacy systems stable and, at the same time, change quickly. The fast layer concentrates on creating and implementing new digital features at a very high speed, thus improving customer experience and making an organization more competitive. It is the slow layer that keeps business core activities secured, compliant, and reliable. That low layer helps businesses keep the pace of digital transformation without risking operational continuity.

Why do companies choose outsourcing in a two-speed IT model?

Outsourcing is used to rapidly develop the skills and agile mindset that support the fast layer in two-speed IT. Outsourcing partners are typically more expert in contemporary product-focused development and capable of instituting new technologies and processes. This lowers the time and cost of internal transformation while keeping up a continuous stream of innovation; meanwhile, it allows in-house IT staff to maintain and enhance core legacy systems.