The very first prime minister of Singapore, who dragged the nation out of miserable past and lead them into glorious present, Lee Kuan Yew had remarkable views about Outsourcing. As per him, “If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.”

IT Outsourcing, as a phrase, is the practice of seeking resources outside of an organizational structure for the whole IT function or a part of it. 

Likewise, IT outsourcing is all about finding and hiring offshore IT experts to your advantage – cost saving and maximizing your ROI while focusing on core business operations.

Pros and Cons of IT Outsourcing

Being a sane human, we have this in our nature to look at the pros and cons of the choice we are making. Then how come we can overlook the outcomes of the decisions we are going to build our whole business on?

Let’s have a brief look over the consequences of getting an IT outsourcing company on board.

Advantages

• Broader Pool of Expertise

The primary benefit of IT Outsourcing is we gain access to the broadest pool of expertise, since the search and hiring process are not limited to some particular location. It also offers an opportunity to reduce overhead costs via staff augmentation. Additionally, a dedicated workforce help avoid a hiatus created by lack of in-house experienced personnel typically at the times of peak business and IT experts demand.  

• Cost Effectiveness

We have lots of IT Outsourcing service providers these days because of its cost effectiveness. This way, businesses looking for experts to meet their IT challenges don’t need to hire in-house staff at a fixed cost and give them expensive trainings in addition to providing them benefits like insurance or sick pay. What IT outsourcing companies do is providing technical resources on hourly, monthly or project basis, and with no government red tape and tedious contracts.

• High Security Standards

Furthermore, contractors only provide few particular areas of IT services as per their employees’ expertise that could be extended any time as per client’s needs. That’s why, they are most likely to have the up-to-date, hands-on experience of the latest technology stacks and best-quality equipment to deliver complete web solutions at best.  This way, we can assume about them having the highest security standards of the services.

• Frees Up Internal Resources

Over and above that, IT Outsourcing free up internal resources and this way their expertise can be used where they can bring more innovative potential instead of just sapping their capacity.

Disadvantages

• Losing Control

The basic downside of IT Outsourcing is that you lose the granular control over the IT functions, since it’s difficult to closely monitor an off-site team than an on-site team.

To resolve this issue, we have lots of software to properly track and monitor the progress of the project and to have proper follow-ups with the remote team.

• Quality Expectations Gap

Another issue is the quality expectation gap that can lead to some disastrous cost and time inefficiencies. To avoid this, perform proper and thorough research on the contractors and their expertise by looking at previous work. Another thing we can do to circumvent this issue is to contact their previous clients and ask about their communication skills, transparency, and work standards, i.e. if they delivered work on time and as per requirements with no hidden cost.

Global Outsourcing

Now, here’s a confusion may arise for business owners about how to hire remote workers from reliable service providers. Global outsourcing is perhaps the most accurate approach where companies can get their custom software development requirements done from another country at lower cost compared to getting from within their own country or engaging IT teams in-house.  Most importantly, these companies tend to get their few services done from the countries with much affordable dedicated IT resources that will help them reduce the overall cost of the services acquired and the tax and tariff relieve few countries provide.

Final Thoughts

Now that you’ve seen the positives and negatives of IT outsourcing solutions, you have an idea of whether you should go for it or not. Considering the benefits in the form of saving overhead expenses, flexible rates, access to one dedicated resource or team of certified professional, no hidden charges and transparency maintained through NDAs, you can grow your business exponentially with the support of dedicated workforce.

Looking for IT outsourcing services provider? ArhamSoft (Pvt) Ltd. is an ISO certified IT solutions provider that empowers businesses with dedicated resources on a regular, part-time or hourly basis to handle their IT challenges with absolute affordability and satisfaction.