The recent years have been revolutionary for enterprises, not only from the perspective of embracing innovative technologies but from that of their operations as well. Outsourcing of technology services has become a norm. On the other hand, there are still some organizations that advocate the benefits of having their own in-house teams for handling the IT infrastructural and operational requirements. The pros and cons of both the options make a hot topic of debate for businesses that are starting their entrepreneurial journey as well as the established entities. Let us understand what IT outsourcing is all about and the benefits that it can drive for digitally progressive organizations.
What are the IT functions that businesses may need to outsource?
When you talk about outsourcing IT requirements, there are several that a business comes across through the stages of its set up and evolution. While some like infrastructural setup and application development are needed at the beginning, others may be needed during their digital transformation journey. Yet others like maintenance and support services are needed for smooth running of the business. Listed below are some of the most commonly outsourced IT functions for businesses.
- Web development
- Web hosting
- Software and application development
- Database development and management
- Website/application maintenance
- Technical support
- Infrastructure setup and maintenance
- Information security
The type of services that you need for your business depends on the size, type of operations, growth potential, and other requirements. You may outsource services from providers located in the same area or even from other country (off-shore), depending on your needs. You can even have an outsourced team working for you at your office, though these will be hired personnel rather than professionals on your payroll. What really matters is that you get expert professionals delivering quality services at optimal cost. When you compare IT outsourcing with in-house teams, there are several things that go in favor of the former.
How outsourcing IT services makes a better option as compared to in-house teams?
Here is a list of reasons that you should prefer to outsource IT professionals rather than have an in-house team working on specific functions.
(1) Cost reduction: The primary reason that more and more businesses are option for outsourced services is that it saves money for them. This is due to lower labor costs as you need not spend money on recruiting, training, and retaining the employees; rather you get access to trained resources on hire. Plus you get the advantage of tax savings as well.
(2) Time savings: By partnering with an outsourcing vendor, you are able to save the time that is needed to recruit and train the in-house team for the same functions. This reduces the burden on the Human Resource team and gets you on your feet faster than expected. Time is precious for startups and enterprises looking to elaborate their IT infrastructure.
(3) Access to global talent: Another reason that makes outsourcing a favorable hiring model is that it gives you access to global talent. The local professionals may not be adept with certain technologies that you may require. In such case, it is best to outsource skilled resources from elsewhere.
(4) Better use of internal resources: When you outsource professionals to handle certain functions, you free up the internal resources to look after some other business-critical process. You can invest time and money saved on fulfilling more meaningful requirements of your organization.
(5) Accelerated business processes: Another benefit that you can avail by embracing IT outsourcing is that of accelerated business processes. With external providers looking after cumbersome tasks such as maintenance and support, you will be able to move forward with your core offering of your business at a faster pace.
(6) Quick implementation of new technologies: This service model supports rapid implementation of new technologies as you need not train resources or hire new ones to initiate the change. Reliable IT companies offer expertise and experience that is needed for early adoption of a new technology.
(7) Risk reduction: Besides cost reduction, IT outsourcing is associated with risk reduction as well. The reason is that outsourcing providers significantly assume and manage the risk for the client as they come with specific industry knowledge, particularly security and compliance issues.
(8) Benefits of re-engineering: By availing external expertise, you get the opportunity to be evaluated by experts who can give you suggestions regarding improvements and scaling for growth. This equates free consulting for re-engineering your existing operations and setup.
(9) New growth avenues: Outsourcing may be a smart idea for businesses that want to explore growth opportunities in new market areas. Providers can actually help you to expand your business by closing the gap between the point of service delivery and the end users.
(10) Focused on Core Business: Businesses have only limited resources, which can be focused on the core areas once you have the IT grounds covered. With a reliable provider by your side, you need not worry about the complex IT set, security, and scaling decisions.
Considering these amazing benefits of IT outsourcing, it seems like the best choice for enterprises as well as startups. However, there is a need to find a technology partner that you can rely on without any doubts, both in terms of technology expertise and consistency in service delivery. OrangeMantra is a reputed digital transformation company that offers a wide range of IT services for businesses looking for an outsourcing model. We cater to businesses of all sizes, in India and across the globe, with a diverse set of technological expertise in our portfolio. Connect with us, share your requirements, and we will have a perfect solution for you!