According to Gartner’s definition, IT outsourcing involves engaging external service providers to efficiently handle IT-enabled business processes, application services, and infrastructure solutions to achieve desired business outcomes.
By encompassing utility services, software as a service, and cloud-enabled outsourcing, the remote software outsourcing team aids clients in devising appropriate sourcing strategies and visions.
The concept is simple and straightforward: rather than recruiting in-house talent, opt for the services of a third-party provider to fulfill your IT requirements.
But what does it all mean in a real-life context, what benefits does it provide, and what can you gain from it? We will look at IT outsourcing services, touch on different types of outsourcing, and discuss their benefits. Let us begin with our guide to IT outsourcing.
What Does IT Outsourcing Mean for Your Business?
To begin with, let’s explore the concept of IT outsourcing. It involves a company shifting a portion of its software development tasks outside of its in-house structure to achieve cost savings and maintain control over the processes. Essentially, the company entrusts the implementation of tasks to a partnering external IT outsourcing services company while retaining oversight.
IT outsourcing can be executed through two primary approaches: onshore and offshore, with a middle-ground option known as nearshore software development. These approaches are categorized based on the location where the service is provided:
- Onshore: Involves hiring professionals located in the same country, enabling cost control and easier supervision. This is the simplest type of outsourcing as you know your local market, average rates, business culture, and overall situation.
- Nearshore: Refers to outsourcing tasks to neighboring countries within the adjacent time zone, facilitating better communication with developers. This can be a more cost-efficient option. At the same time, you do not sacrifice much control over the development process as your virtual team will be located nearby.
- Offshore: Entails outsourcing to a completely far-off country, allowing for significant cost savings. At the same time, it entails certain problems such as lack of control, cultural and language barriers, inconvenient working hours, and more.
Why should you opt for IT outsourcing if there’s always a compromise between control, price, and quality? Well, the simple answer is cost-reduction but that’s barely scratching the surface. IT outsourcing services provide a number of benefits to businesses trying to expand their operations in the most efficient manner. Let us get straight to the benefits of working with a reliable software development outsourcing company.
7 Main Benefits of Partnering with an IT Outsourcing Services Company
The considerably high costs of building software in-house, as well as the long timeframe of software development projects, have led companies to seek talent abroad to accelerate software delivery and reduce cost and time.
Now that you know the basic differences between forms of outsourcing, what can IT outsourcing actually do for your business, and why is it such an attractive option?
1. Reduce the cost of development
When you opt for outsourcing or contract IT outsourcing, the responsibility for hiring, qualifying, and compensating IT professionals lies with the outsourcing company. As a result, there is no need to maintain an in-house IT department, and expenses related to payroll, infrastructure, taxes, and training can be avoided. Additionally, outsourcing offers the advantage of converting fixed IT costs into variable costs. This flexibility enables you to plan your budget more effectively, as you can adjust the expenses based on your month-to-month requirements. Whether you need to upscale or downscale the services, outsourcing allows you to adapt your expenditure accordingly.
2. Ensure flexibility and agility in the processes
Technology professionals understand that in the realm of software development, encountering bugs is rather common. Operating errors are a natural part of the process and can significantly affect a company’s progress and productivity. Leveraging IT outsourcing services provides your company with access to more flexible solutions. IT outsourcing companies possess the ability to swiftly adapt to internal needs and promptly address emerging issues. The quicker these problems are dealt with, the less impact they will have, facilitating a more fluid and agile response to demands.
3. Have a dedicated team
For large, long-term projects, it is essential to have dedicated teams. This means having exclusive service and teams that adapt to market changes and new demands, delivering results with expertise and speed. IT outsourcing company usually has a well-established work methodology. This means that the team can handle itself and adjust its practices depending on the demands of a particular project. Having a dedicated development team means working with a group of people who are solely committed to your project. They will dedicate their efforts to your project only while the software development outsourcing company handles all the operational headaches.
4. Look for service quality and efficiency
IT outsourcing provides opportunities for the company to boost operational efficiency and streamline processes. Specialized IT outsourcing service companies possess valuable insights into critical aspects and common challenges, enabling them to swiftly identify and resolve issues. These companies and teams excel in their expertise, often investing in tools, solutions, and training to further enhance their services, benefiting both the contracting company and their end customers.
5. Increase productivity and focus on the core business
The strategic use of IT outsourcing provides a competitive advantage that you cannot ignore. The autonomy of the IT outsourcing teams gives you the opportunity to focus on the core business tasks rather than micromanagement. If you delegate your software development project to an external vendor, you no longer need to worry about it too much. Of course, you must maintain a degree of control over the project, but it no longer requires as much attention.
6. Security and accountability
Maintaining the security of a company’s data can be a delicate task. Information security requires continuous monitoring and investment to stay ahead of threats. IT outsourcing company you work with must comply with IP regulations and sign an NDA. That way, you will be able to protect your source code and your product as a whole. A reliable software development partner will guarantee the complete security of your data.
7. Access to global resources
IT outsourcing can help companies expand their operating limits, connecting the best specialists from different areas in different parts of the world. IT outsourcing is also an excellent source of specific expertise. Even when you have an incredible internal IT department, you never know when you’d need a rare specialist who can handle some obscure aspects of product development. Finding such an expert in your local talent pool may prove to be a real challenge. That is where an IT outsourcing company can offer a helping hand giving you access to the world’s best experts.
Final Thoughts: Outsource and Take Ownership of Your Project
You need to remember that despite another company working on it, the project is still yours. Treat it with the same level of commitment and engagement as if it were being handled in-house. Maintain regular communication with your outsourcing team. Utilize visibility tools such as JIRA, Trello, and Slack to monitor changes, updates, objectives, and team comments. Regularly review deliverables and don’t hesitate to reach out to the vendor if any concerns arise. This will help you maintain a degree of control over the development process while freeing up time for core business responsibilities.
