It is very rare to find a company that is ready to take upon all the IT responsibilities on itself. It has already become a well accepted business model, to outsource one’s IT requirements. While there are many reasons for outsourcing one’s IT requirements, economical and operational benefits are two of the most important reasons.
Even companies that were initially reluctant to outsource IT projects have now begun to do so, because it helps them to focus on their core-competencies. From this development, we can hypothesize that IT outsourcing is an inevitable, unavoidable and very desirable step towards business growth. In this article, let us take a look at why companies are increasingly moving towards IT outsourcing and why it is becoming inevitable for business growth today.
1. Costs less
IT projects are very expensive and they require a lot of investment on the part of the company. Companies need to spend on IT infrastructure, planning, hiring IT professionals and also implementing IT tasks.
All this costs a lot of money and even for a larger company, it can turn out to be an unnecessary expenditure. IT outsourcing helps companies to gain access to superior IT infrastructure and human resource at a fraction of the cost, thereby reducing expenditure.
2. Delegation of time-consuming task to external resources
A lot of IT tasks consume a lot of time and effort. Even if a company possesses IT infrastructure an on-site tech professionals, time consuming and repetitive tasks can be outsourced to an offshore agency, where the same tasks can be finished at a lower cost. This allows companies to focus on their niche, instead of spending their resources on time consuming projects.
Time is very valuable and dedicating precious man-hours to something that can be done at a fraction of the time at a specialized IT vendor is quite unnecessary. Thus, one can delegate time-consuming and repetitive tasks to external resources.
3. Reduces load on internal resources
Just because a company has adequate IT infrastructure or IT professionals does not mean that they should be wasting it on mundane tasks. These can be outsourced to an external agency and thus free-up internal resources which can be utilized for more analytical, creative and higher-level tasks.
Internal resources can be used for building and sharpening a business that needs to survive in a competitive environment. It is quite unnecessary to over-utilize internal resources on IT projects which can easily be outsourced to an external vendor.
4. Permits access to world class knowledge
Offshore IT vendors work with a number of clients from diverse backgrounds and they usually have years of experience. Moreover, most IT offshore service providers have their own R&D which helps them to have an edge over others. Most companies, small, medium or large; do not have access to this kind of R&D and infrastructure.
Most companies also do not have the kind of IT experience that a specialized IT vendor possesses. Companies and clients can access this world class knowledge at a fraction of the cost, without having to employ anyone full time.
5. Helps in regulation of functions that are out of control
When IT tasks grow larger in size, they become unmanageable. This results in valuable resources being deployed to non-essential IT tasks which could have been handled by more experienced and affordable external agencies. Moreover, IT projects can easily go out of control and become difficult to regulate.
An experienced offshore IT consultant will be able to help companies to bring order and discipline to IT departments of client companies. This helps companies to streamline their more essential tasks and focus on building their businesses.
Though it may initially seem to be confusing and expensive, IT offshoring will eventually free-up internal resources and help in bringing order within a company. Moreover, in the long term, IT outsourcing helps to reduce costs and decease burden on existing infrastructure, allowing companies to focus on building a niche within their own industries. Instead of working harder and ending up burning out resources, companies and clients can play smart and outsource IT requirements, while also saving money in the long term.