What Is the Main Purpose of IT Outsourcing?

The majority of people choose to handle their company’s IT services by outsourcing. The concept of outsourcing is an umbrella term on its own. There are:

  • Offshoring
  • Nearshoring
  • Onshoring
  • Multi-sourcing

This division is based on the physical location of the team/experts that your company is outsourcing to but there is a lot of other things to consider as well. In order to decide what kind of outsourcing is right for you, as well as whether you need outsourcing, you might want to take a closer look at the main reason why people are outsourcing. Let’s check it out!

1.      It’s cost-effective

The first thing worth taking into consideration is the fact that outsourcing is cost-effective in the short run. In order to start a department, you would have to initiate a hiring process, which is quite costly in the IT industry. Second, you would have to improve your onboarding process, invest heavily in training, and even start a mentorship program. Most importantly, you need to acquire suitable hardware and pay for necessary software licenses. While outsourcing has all of these included in the price, the truth is that the initial investment isn’t nearly as high.

2.      Quicker results

The next major advantage of outsourcing is the fact that you don’t have to wait as much. We’ve already mentioned how complex the process of starting your own department is. This, however, is just the initial stage. Even if you hire experts for your team, it will take them a while to get accustomed to the new workflow. Not to mention that during this process of acclimation, there will be new innovation and updating, as well as the appearance of new trends. With managed IT services, you can make all of this someone else’s responsibility and get immediate results.

3.      Focus on core tasks

One of the biggest perks of IT outsourcing is the fact that you can let someone else take care of this highly-specialized task and focus on what you do best. In other words, regardless of how much you know about IT, it is a highly specialized field, which means that your continuous education on the subject matter might take too much of your time and energy. As a manager or entrepreneur, your attention is probably needed elsewhere. By focusing on the core task and outsourcing your IT, you will have less administrative work to handle. This gives you both a passive boost and allows you to alleviate quite a bit of stress.

4.      Scalability

As your company grows, the list of the services potentially grows, as well. The agency that you’re working with probably has capacities far beyond that of your current needs. After all, they’re taking care of your IT services and working with other agencies, as well. This means that as your needs increase, their services might expand to accommodate you. This can be achieved by simply renegotiating the deal. With an in-house department, on the other hand, your job would be more difficult. You would have to bring in more people and do everything that accompanies this process.

5.      Reduced risks

Lastly, people outsource to reduce operative risks. When you outsource the agency that you’re working with takes on a part of the responsibility. Seeing as how they’re already more experienced in the respective industry than you are, they’ll also be more successful at averting risks. Of course, there’s the risk of outsourcing, to begin with. The biggest concern here is the issue of trust. However, when you consider the history of the company in question, their reputation within the industry, size, and number of employees, it’s a lot easier to find a trustworthy partner.

In conclusion

The bottom line is that IT outsourcing gives you more immediately. It may not cost you less in the long run but it helps you get the services of a team that has the proficiency you would have to spend years, as well as a fortune, to build. For those looking for an immediate solution, there’s simply no way to beat outsourcing. Due to the very specific nature of this industry, it costs quite a bit to make an in-house IT department, which makes outsourcing the quickest and the most elegant solution to the problem at hand.

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