Businesses have long debated IT outsourcing services and it has both supporters and opponents. However, it is patently clear that no matter how big or small a company is, it will always want to hire people at lower costs. Having said that, many businesses that outsource have discovered the practice not only saves money but also offers several other major benefits.
Additionally, outsourcing services has been a preferred choice for multinational corporations for a long time. According to Deloitte’s Global Outsourcing Survey in 2020, “Almost 57% of global organizations use offshore developers to concentrate on their core business activities.”
Despite numerous instances of organizations successfully outsourcing their work, many organizations continue to remain doubtful due to worries about consistency and data protection. The successful stories of many companies, however, reveal that outsourcing is completely different in practice.
This article will outline five situations in which you and your company will need to outsource services to expand your business. So let’s begin! But before we go any further, let us learn why big businesses opt to outsource.
Let’s not forget that the term outsourcing is used when a business recruits people outside their office. However, the reasons for this will vary depending upon several factors like the size of the company, its actual requirements, the location of the business, and so on. Below, we have listed a few common reasons as to why businesses choose to outsource IT services –
- To save on labor costs
- To save time and effort
- To focus more on core business activities
- To lessen the operational risks while expanding
- To solve capacity issues
- To improve quality
- To access a pool of talent
- Other business needs
This demonstrates that companies outsource for a variety of factors. But more often than not, there are several contributing elements rather than just one. Below, we have mentioned IT services that are widely outsourced –
- Web Development
- Software Product Development
- Content Management System
- eCommerce Solutions
- e-Learning Systems
- CRM Systems
- Enterprise Information Portals
- Intranet Applications
- Customer ERP Systems
- Legacy System Maintenance
- Application Enhancement
Moving on, we will discuss five scenarios from real life where your business could need you to outsource.
Five Real-Life Scenarios for You and Your Business
1. Inability to find the right IT Developer at a local level
Despite having a great number of IT professionals in each nation, many businesses continue to suffer from a dearth of IT developers. The absence of local access to IT specialists can be attributed to several factors. Along with excessive demand for compensation, there may be a problem of lack in experience, skill and tech capabilities. This is where outsourcing comes in; it helps you get the best talent from across the globe at a very reasonable price.
2. You need to cut down on labour expenses
Almost every business wants to find top talent at the most affordable price. However, local IT experts may demand greater compensation due to their living standards whereas countries like India, Ireland and China, where living standards do not meet western standards, will have lower salary expectations. The main advantage of outsourcing is that you gain access to the global talent and skill pool that is lacking within internal boundaries. Second, through outsourcing, the company saves money on labour and overhead. Not to mention, IT services outsourcing to India can help you save up to 70%.
3. You need special IT skills to grow your business
Another real-life scenario is when businesses require people with specialized knowledge of a particular technology. A company may be lacking a capable web developer or a mobile developer that the company simply needs for a specific project. Here, outsourcing can be useful. Outsourcing will help locate professionals with the specialized expertise you need from all over the world. This will not only enable you to save money but it will also speed up the hiring process for you, allowing you to grow your company more quickly.
4. To promote internal changes in the organization
Many companies struggle internally to manage workflow and customer support. It may be advantageous to outsource IT services for some critical development tasks so that internal teams may focus on efficiently running the business. Additionally, it’s critical to know your areas of weakness and delegate development work to outsourced programmers to make internal improvements for your company. This will assist you in focusing on the company’s priorities and implementing necessary internal team-wide changes.
5. Beta testing needs of the business
Beta testing outsourcing is now seen as a preferable alternative for businesses because of its many benefits compared to the past when it was mainly done to cut expenses. Given how important testing is to businesses, it must be performed expertly with the aid of all available technologies. Many companies use an outsourcing team to prepare their copy and design for beta testing. This would enable the business to grow and get insightful input from across the world.
All of these real-world scenarios will apply to your organization whether you are a start-up or a large corporation. You can stick to your budget, give your internal team members more time, grow your business and keep up with the global competition by outsourcing your IT services. However, keep in mind that you also need to ensure you have a dependable communication tool and project management software as you begin to engage remote workers. Moreover, your savings from outsourcing your IT services to India could reach 70%.