We live in a time where there are too many companies, too many competitors and sometimes the market does not seem like it’s big enough for everyone who has great ideas. There are a lot of things you can do to step up your game and be noticed by the users.
One of them is outsourcing and IT outsourcing should be one of the things you consider if you want to make things easier for you and make your company better. With an external provider, you could save a lot of time, money and you will know that you are working with experts who will get the job done.
What is it?
The practice of using outside companies to handle work that could normally be performed within a company is called outsourcing. Small companies use it to get help with their accounting, payroll processing, distribution and much else. Large companies use it to cut costs and get expert advice for a limited amount of time.
IT outsourcing describes the practice of seeking resources outside of a company for all or part of an Information Technology function. Your company could use this type of subcontracting for functions ranging from maintenance and support to software development and infrastructure.
Different Types of IT Outsourcing
There are many different types of IT subcontracting and they are all different and specific to suit your needs. They may be defined based on three questions – where, how and why. These are the most common types:
- Project-based – the company gives all the information to an external provider and the provider does the project management, quality assurance and software development;
- Out staffing – commonly known as body landing. The company buys the time of the employees of the external provider. The company usually pays hourly or monthly rates;
- Offshore – a process where the company uses services from an external company located in a foreign country. India, China and the Philippines and countries that offer services for lower costs, tax savings and political stability;
- Nearshoring – getting services from a company in a country that shares a border with your own. This type makes communications and travel easier;
- Onshore – using the services of a company in your country to provide IT related work on site, or remotely;
- Home shoring – allowing employees to work from home instead of a physical workplace. This cuts costs of office space, bills and any additional budget;
- Cloud computing – the external provider provides IT related services over the Internet;
- Managed services – the external company provides network management functions such as network monitoring and reporting, messaging and call centers, firewalls and much more;
When to look for IT services
There are a number of reasons why businesses choose IT outsourcing. It can be to take advantage of external expertise, assets and experience, to reduce costs, and to increase productivity. If you want access to unavailable resources like infrastructure access, staff capabilities and other relevant capabilities you should consider it.
CM IT Solutions suggest that IT outsourcing can lift the burden off your shoulders if you find the right team that will help you instead of slow you down. If you notice that you are missing some of the following, that might be a sign that you need to subcontract IT services:
- Access to world-class experts;
- Increased efficiency for time-consuming projects;
- Enchased company focus;
- Controlled and decreased costs;
- Distributed risks with a partner company.
Which IT services are typically outsourced?
In the current market, you can choose any specific IT services that your company might need. Some of these include:
- Application/software development;
- Application support/management;
- Web development/hosting;
- Database development/management;
- Technical support or help desk;
- Security – virus, spam and other online threat protection;
- Disaster recovery;
- Infrastructure – hardware, software and network installation and support;
There are so many reasons why people are using IT outsourcing. Here are some of the greatest advantages you’d have if you choose to take this step:
- Staffing flexibility – an expert in this field said outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you’re done.” With this you won’t have to worry about the paychecks when you don’t need additional staff;
- Reduced costs – you and your company will save a lot of money when it comes to labor, operations and even equipment. By using staff only when you need them, you can be smarter with money and invest in quality instead of just quantity;
- Expertise – when you outsource you know you are getting the quality and experience you exactly need. Most of the time the team you’d outsource has special equipment or technical expertise, making them better for the task at hand than the team in the organization.
Even though there are so many good things when it comes to IT and outsourcing in general, here are some things that could be considered as disadvantages:
- Language and cultural barriers – if you outsource employees from countries other than yours, it may lead to some barriers. These can affect the clients, the workers and the customers. The easiest way to avoid these barriers is to set clear requirements, explanations and have patience when there are solutions required;
- Different time zones – this can be an additional barrier to communication. To ease things set specific working hours in your time zone. When you start trusting your team you can let them work the hours they want, but always check up on them;
- Possible loss of quality – make sure you have a good screening process to avoid this disadvantage.
Where to hire outsourced help?
There are many places where you could find help these days. Depending on the type of work you need to be done, the time frame and your budget you could use a freelance website or an outsourcing company. Depending on your company’s needs, you may be looking for just one person, a team, or an entire department.
When looking for outsourced workers remember not to settle for the cheapest deal you can find. Usually people who are qualified and have the experience you need know their market value and will require more money.
IT outsourcing is a great way to get things done fast, easy and most importantly, everything to be done right. Depending on the services you need, you can choose the type of external provider you need, number of employees and time frame.
If you are not sure for how long you would need the services, you can consult with the company you want to hire and ask for their expert advice on how much time that project or task would take.