An introduction to IT outsourcing services and its advantages

IT outsourcing is a popular term used to describe the newfangled practice of seeking resources outside one’s own company or subcontracting outside of an organisational structure. One can outsource all or part of an IT function ranging from infrastructure, software development, maintenances, and support.

As a part of an outsourcing definition, information technology outsourcing makes use of external services providers (best in their field) to potentially deliver business process, business outcomes, infrastructure solutions and application services enabled by IT.

Outsourcing companies not only includes utility services, cloud enabling services or software as a service, but it also helps its client in developing the right vision and strategies for sourcing. By selecting the right IT service provider, one can easily structure the best possible contract and govern deals for the sustainable relationship with external providers.

Here’s all about the types, advantages, and disadvantages of IT outsourcing.

Types of IT Outsourcing

There are several different types of IT outsourcing services provided by the outsourcing companies, depending upon where exactly outsourcing work will take place. These include:

1. Moving business/services overseas: This is opted to take advantage of more favourable economic climate, due to cost-cutting.

1. Nearshoring : Transferring business or services to another neighbouring or close by country, often times choosing the one sharing the border with hosts country.

1. Homeshoring/onshoring: This provides services to all its employees to work from home rather than an office, factory or related workplace, to make the business cost-effective and convenient.

Some of the IT Services those are frequently outsourced

• Web development/hosting

• Application/software development

• Application support or management

• Database development/management

• Infrastructure

• Technical support/help desk

• Telecommunications

Major Advantages of Outsourcing

Clients obviously need a good explanation for why IT Outsourcing is an emerging trend. Here is the list of few good reasons for companies and entrepreneurs to choose to outsource as a part of their business.

1. Expertise: To find the expertise in the field you are planning to work may lack at your side, then outsourcing the particular task or service to an overseas vendor/business that has special equipment to deal with it or technical expertise in the same field is a good move.

1. Reduced costs: A big advantage of outsourcing is reduced in overall expenses. As the cost of operation, labour and even software or equipment become nil.

Major Disadvantages of Outsourcing

Outsourcing comes with potential disadvantages, which are surely not major ones and are easy to deal with.

1. Language/cultural barriers: The one that affects both employees and customers, however, electronic translators have made this daunting task very easy.

1. Different time zones: This acts as a major barrier when it comes to coordination. However, the dedicated companies have now started working according to the client’s suitability and shift their working schedule to client’s country timing.

IT Outsourcing has marked its benchmark in enabling enterprises to accelerate time to market, take advantage of external expertise, assets or intellectual properties, and reduce overall cost. If you want to excel your company’s growth, choose the trusted name in the market and avail the benefits of IT Outsourcing.

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Tech Elite is the leading Philippines facility supplying full time IT staff, technical staff, and business / customer support roles. After providing detailed consulting to help you build an offshoring strategy,