Most entrepreneurs and business owners feel that it’s important to be in total control of their companies from the smallest everyday tasks to the largest of projects. This is understandable, but it simply isn’t always the right way to go about running a company if they want to be successful in the long run. Keeping all aspects of a company under one roof leads to high costs, bottlenecked or delayed projects, and sometimes toxic micromanagement.
For these reasons and many more, business owners are turning to outsourcing to fulfill their needs. In fact, at least 30% of companies in the United States outsource part of their business and 78% of them have a positive relationship with their outsourcing partner.
The information technology industry specifically outsources the most, with 94% of IT organizations utilizing some form of outsourcing for their processes. If businesses want to stay competitive in their industry, they must rely on strong IT support for their digital presence and internal processes.
What is an IT Outsourcing Provider?
IT outsourcing companies are third-party organizations hired by companies to provide necessary technical services and resources. This is the opposite of an in-house IT team as they consist of employees who work directly for the hiring company. In the niche of information technology, the outsourcing partner acts as a third-party vendor for multiple clients to assist with their technology needs and solutions on an as-needed or contract-based setup.
There are different types of outsourcing depending on the needs of a business. Offshore outsourcing is the practice of hiring a provider in a foreign country, which typically offers lower costs and tax savings because of a lower cost of living. Nearshore outsourcing provides some of the same benefits while the outsourcing provider is in a country or region close to the hiring company. Onshore or domestic outsourcing is the hiring of external service providers within the same country, whether remotely or on-premises.
IT outsourcing providers cover a wide range of technology needs. These services range from tech and help desk support, application and software development, database management, infrastructure support, data storage, data management, and many others.
How Does Outsourcing IT Help Companies?
When businesses choose to outsource IT, they gain the assistance required to achieve their website and software development goals regardless of their size or business vertical. These companies also benefit in a variety of other ways, including:
Cost
Businesses cite cost reduction as the top reason why they choose to outsource their projects. There are many ways that outsourcing saves organizations money when compared to hiring an in-house IT team.
The initial infrastructure required to begin building these specialized teams in-house normally has a very significant cost. This includes expensive aspects such as recruitment, retainment, payroll taxes, health insurance, benefits, as well as the required hardware and software necessary to get the job done. It’s rather difficult for small and medium-sized businesses to come up with the money required for this up-front investment when hiring someone in-house.
With outsourcing, companies need only pay a monthly or hourly rate (depending on the contract) and don’t have to worry about any of the additional costs traditionally associated with hiring employees. Organizations get more work done for a fraction of the price of hiring in-house IT support staff.
Scalability and Flexibility
Unlike hiring in-house employees, outsourcing allows companies to scale their teams on demand. When they have fewer projects or don’t require as many skilled IT professionals, organizations simply cut the number of members of their outsourced team. When the organization requires more hands on a project or needs more help to get things done at a faster pace, they add professionals to the team.
Scaling up and down in such a flexible manner is simply not achievable for companies hiring only in-house employees. This would mean laying off team members or going through the recruiting and hiring cycle over and over again, thus costing more and taking a lot of valuable time.
Access to Talent
IT outsourcing companies employ the best and the brightest in their respective industries. If a single organization were to attempt to hire a robust and talent-driven team, it would cost enormous amounts of money and there’s no guarantee that they would gain access to the variety and level of talent. Third-party providers offer businesses access to an incredible range of experts at a lower cost.
When is it Time to Outsource IT?
Businesses often question when is the best time to outsource their information technology needs to help build a better company.
Is IT taking up a lot of time?
When IT issues continually occur, they pull employees and business leaders away from their core company functions. No matter the industry, these IT issues interfere until the addressing of these problems.
IT outsourcing companies take all of the tech-related tasks off of the plate of the hiring company to help keep internal operations running as smoothly as possible. These trained professionals troubleshoot problems, set up programs, work on projects, and ensure that the in-house team isn’t weighed down by issues that aren’t in their normal wheelhouse of services.
Are tech operations running as smoothly as possible?
When it comes to business and technology, efficiency is absolutely critical. If technology is outdated or not running at maximum efficiency, businesses put their security and core functions at risk of threats or general failure.
By partnering with an IT outsourcing team, organizations rest assured that their company has the latest technologies and that their operations are running as smoothly as possible. This technological assurance helps set organizations up for success with their core services.
Are IT professionals required all the time?
Sometimes companies don’t require skilled IT experts in the office at all times. If there are specific needs or projects that need completing, outsourcing is a great option.
If occasional IT services, such as the updating of technology or on-call support, are the majority of an organization’s tech needs, IT outsourcing offers work on an as-needed basis without a significant amount of commitment.
Ready to Jump-start your Project?
IT outsourcing provides companies with a wide array of benefits without the exorbitant costs, responsibilities, and stress associated with hiring in-house professionals. Third-party providers not only help organizations accomplish their goals and offer support in the short-term, but they also help them build better businesses over time.
At BairesDev, we work with the Top 1% IT Talent to guarantee high-quality delivery for our clients, every time. Contact us and one of our industry-specialized IT consultants will talk it out with you. We are always happy to help!
