IT outsourcing is becoming a common practice these days, considering the constantly emerging business models. Both start-ups and small to medium companies, all over the world, are outsourcing business processes, for high-quality timely outputs and substantial cost savings. Outsourcing, in simple words, is implied as contracting out various business operations like marketing, lead generation and sales, human resource, software development(IT) etc. to external service-providing companies. Today, IT services, like software development and maintenance, software-as-a-service (SaaS), Cloud and Mobile solutions, and cyber-security are among the most outsourced functions. In the case of IT outsourcing, companies, looking to contract out projects, partner with external organizations or software development firms to get the job done flawlessly. Not just one, outsourcing companies sometimes provide several services, clubbed together, to meet the client’s requirements.
6 Primary Benefits of Outsourcing IT services:
Outsourcing IT services help business owners to gain a competitive advantage over their competitors by substantially cutting down costs. Skilled and experienced software developers or engineers can only ensure error-free timely outputs. Besides, setting up an infrastructure, by purchasing the required hardware and software, and acquiring their licenses, is quite an expensive affair. Therefore, instead of spending money on hiring and training in-house IT Staff, outsourcing the IT services to external software development companies, which are usually equipped with adept personnel, latest software and hardware, often turns out to be extremely cost-effective for a company.
- Resource Optimization
Companies which have in-house IT teams also feel the need to outsource IT services to ensure uninterrupted operation and timely completion of projects. This is because the in-house employees are entitled to sick leaves, vacations and other benefits, but the outsourced team gets a target to fulfil and the outsourcing companies need to make sure the job is done within the timeline mentioned in the contract. Besides, many IT-related tasks directly contribute to achieving the primary goals of businesses. These can be handed over to the best of the in-house employees and the less important mundane bulk work can be outsourced to the partner company to ensure timely outputs, with high accuracy.
- Access to The Latest Technologies
Technology is evolving at a lightning speed. To meet the constantly growing expectations of the customers, a company needs to be equipped with the latest technologies. Modern IT projects can be smoothly carried out only by using the latest solutions stack or technology infrastructure, which non-specialized companies often lack. Big, reputed software development or IT outsourcing companies keep on updating themselves, at regular intervals, to stay at par with their competitors and offer their clients the best services. Hence, outsourcing IT services offer businesses access to the latest technologies.
- Advanced Scalability
The constantly-changing business requirements often create the need for scaling the IT support, among others. Expanding the internal teams, generally, doesn’t turn out to be economically viable and time-saving. Outsourcing the function to an IT outsourcing company, which has sufficient resources and a strong database of potential candidates, capable of working on all types of projects, provides a scalable solution that can be easily augmented when needed.
- IP Rights Acquirement
Many reputed IT outsourcing companies provide their clients with all the necessary data and intellectual property provisions, like IP rights, developed codes etc.
- Access to the top talent
With an increasing number of engineering institutes and software development courses, it is quite difficult to find the right IT talent in today’s marketplace. By outsourcing the function to specialized companies, a business owner can get immediate access to a well-qualified, skilled and experienced team. This enables the entrepreneur to get the project started faster, minimize errors and ensure timely completion.
Outsourcing not only helps to reduce costs but also initiates growth and optimizes resources. To ensure a smooth workflow and a gratifying alliance with the outsourcing partner, a business owner must sit with the outsourced team and spell out his business goals, and set up deadlines and milestones, before the project starts. Also, it is always beneficial to dedicate one of the in-house employees to liaison with the outsourcing team. This will keep the outsourcer updated on the quantity and quality of the outputs, being produced, each day, by the external team.