With the advent of new technology & trends every day, modern businesses face a lot of uncertainty. Other than this, various businesses don’t possess the required professionals for a particular project.
Therefore, to tackle these situations, many businesses turn up to IT Outsourcing.
Furthermore, companies may find it difficult to recruit talent from their workforce, so they find it highly convenient to outsource that work to some other company.
If you are also planning to outsource your work but confused about what kind of work you can outsource? Then you have reached the right place.
Here, we have explained in detail types of IT outsourcing, services you can outsource, and how IT outsourcing can benefit your business.
So, let’s start:
There are Different Types of IT Outsourcing
- Onshore outsourcing: Onshore outsourcing or domestic outsourcing involves giving contracts to an external service provider that is located in the same country to offer IT-related work either remotely or on-site.
- Offshore outsourcing: This kind of outsourcing involved contracting a company that is situated in a foreign country that offers high-quality work at a lower cost. It also helps them to save a lot of tax.
- Near source outsourcing: In near-source outsourcing, the IT-related work is given to a company that is situated in a country that shares a border with it (USA and Mexico). In such an arrangement, travel, and communication between the two companies becomes relatively easier.
- Cloud computing: In this kind of outsourcing, an external service provider is contracted to get IT related services over the Internet. This can include infrastructure-as-a-service, platform-as-a-service, and software-as-a-service.
- Managed services: In this type of outsourcing an external company is asked to provide network management functions including call center, virtual private networks, firewalls, network monitoring and reporting and so on.
Some of the important services that are typically outsourced include the following.
1). Web development and hosting: Businesses give the contract to other companies to build their websites and host them online. Many companies hire React Js developers or experts in other frameworks to create responsive websites for their companies that will allow them to connect to their target audience and sell their products. Outsourcing web development and hosting services ensure the companies keep their cost down. Furthermore, they get access to high-quality skilled manpower who have the expert domain knowledge to produce stunning websites that will attract more clients. Outsourcing also allows the companies to build their websites using state of the art technologies and highly effective SEO features to improve traffic. A company that outsources its web development and hosting service to a third party is assured that its project is completed on time.
2). Application or software development: Out of various Outsourcing IT services, app development is most popular. Many businesses consider building mobile apps so that they can engage more effectively with their customers. Outsourcing of mobile app building jobs offers a highly cost-effective solution in addition to getting a professionally built app that will expand their business. Furthermore, the company also benefits a great deal by saving time, significantly improving compliance, launching the product quickly and using the latest technological advances in building their product.
3). Technical support or help desk:
Many businesses also outsource their helpdesk service to another company. In this case, the outsourced company provides all that technical help required by the customers who are using the products of the company that has outsourced the service. Outsourcing to a third party ensures that it is better managed so that the customers are satisfied. Additionally, outsourcing technical support and helpdesk services are highly cost-effective and can be provided round-the-clock. This ensures that the company can focus on its vital areas of business interest. A third party with expertise in this field can handle any sudden changes in query volume and manage unpredictable queries related to technical issues to the complete satisfaction of the customers.
4). Telecommunication: Many telecommunication companies retain their competitive edge by outsourcing certain processes of their business to those companies that offer cost-effective BPO support services. This includes services related to wireless, broadband Internet, satellite TV, Wi-Fi, cable TV, and many more. Outsourcing telecommunication services to a third party allows the company to use the latest technology and the best human resources to offer high-end services to their clients.
5). Database development or management: Data is one of the precious resources of a company that, if not managed properly can become unwieldy. To systematically collate the database of a company, many businesses are outsourcing this process to other companies that have the domain knowledge and expertise in this matter. Database management includes database migration services, storage of data in the desired file format, and database development that will align with the business requirements. Outsourcing such important services to another company has many advantages including; let the internal team of the company focus on their core area of interest, 24X7 availability, it is cheaper, and you get the services of the best talent in the market.
6). Networking or communications:
In this type of contract, networks or telecom management services are outsourced to another company for its management, maintenance, improving core network infrastructure. If a company gives the contract to a specialized company to take care of their networks, then they can put their entire focus on their core interest. The company to which the job is outsourced can use cutting-edge technologies to increase the efficiency and security of the network system.
7). Hardware, software and network installation and support: The companies sometimes outsource services related to hardware or software installation to save on operational costs. In this way, the company can focus on their core businesses and outsource those non-core processes to certified experts to offer enhanced customer services as well as save on business expenditure.
8). Disaster recovery: In this, cloud computing and backup service model uses the cloud resources to not only save guard applications and data from disruption but also having a total system backup that will allow the business to continue even when there is a complete system failure. If you outsource disaster recovery to a specialised company, then you have domain experts looking at the issue to resolve it quickly compared to your in-house technicians. Outsourcing such a service is cheaper compared to in-house efforts, wherein you have to pull experts from other important projects to take care of the issue.
In this type of service, businesses outsource the safety and security of their network and data from any unauthorized intrusion. Security firms offer complete system security to ensure that the data and the network of a company are not compromised due to any hacker attack. Outsourcing your security services to a company that specializes in IT-related data safety and security; you get the best possible expertise in the market. An outsourced partner will offer you a comprehensive layered security solution to guarantee that your data and networks are secure from any unauthorized penetration.
10). Digital marketing: Many companies take the services of digital marketing experts to improve their brand recognition online. In this effort, digital marketing agencies undertake a slew of marketing strategies across various channels to ensure that the target customer of a company knows about the brand and its products. Digital marketing companies continuously update their strategies and adopt new technologies to guarantee better results compared to in-house experts of a company. Such companies also have a structured and innovative approach, which ensures that there is a better conversion rate leading to an improved profit margin of the company.
11). Email marketing: Email marketing is very effective if it is done in a structured and targeted way. Experts in the marketing field suggest that email is a mission-critical application that if not handled properly will force a subscriber to leave. Outsourcing of email marketing service can lead to the rapid and successful deployment of strategies to reach out to the target audience in a highly personalized way. Outsourcing such a service will reduce the capital expenditure of a company, as they do not have to invest in capital hardware that is needed for in-house email service. Furthermore, emails are prone to spam and viruses and therefore require constant vigilance. A high level of vigilance is not possible if you rely on your in-house experts for monitoring your email campaign and filtering out spam and viruses if they are also engaged in other projects.
12). Data storage: Storing a huge amount of data requires extensive capital investment in servers and other storage devices. Therefore, companies are increasingly outsourcing this critical service as they offer huge advantages. Outsourced data source companies offer guaranteed uptime as well as higher scalability. Furthermore, it offers greater flexibility, speed, and cost-saving. When a company outsources its data storage to the third party, then the latency, connectivity of data flow improves, and the company can put their focus on their business.
13). Lead generation: Sales calls have to be made in huge numbers to increase your sales and leads. This is a full-time job and cannot be temporarily assigned to in-house employees. Therefore, instead of hiring a full-time employee for this task, you can hire the services of a digital marketing company to get the initial leads. These leads can then be processed and the deal closed by your internal sales force. The expertise of a salesperson in your team can be better utilized by handling clients and closing deals rather than making cold calls.
14). Content writing: Content writing is the core function of any online marketing strategy. Content writing can include advertising content, content related to social media, blog content, and many more. Companies looking for unique and attractive content can outsource this service to a digital marketing service provider. These companies have huge expertise in generating authentic content, doing research, writing, editing, and proofreading. Since these activities require hours of work, the company can spend it more productively in some core areas of their business.
What are the advantages of outsourcing?
There are a lot of benefits of outsourcing IT services. Many companies outsource some or all of their It operations. Some of these benefits are listed below for your ready reference.
a). Many times, an overseas vendor with special equipment or technical expertise can do a task in a far better manner than the existing employees of the organization. Outsourcing in such a case brings efficiency to work and improves productivity.
b). One of the biggest reasons why many companies in the first world country outsource their IT related work overseas is due to the reduced cost of labor, equipment, and overall operations.
c). Many businesses outsource their job to cope up with seasonal or cycling demands. Outsourcing some of their jobs helps them to bring additional resources as and when required thereby optimizing it fully.
There are distinct pros and cons associated with outsourcing IT-related jobs and there is no one size fits all solution. Therefore, companies should look at the long-term strategy of how to maximize their resources and reduce their cost to stay competitive in the market. When you are trying to select a company to outsource your IT-related work, then you must look at the reputation of that company, its past work, cost, and the technology it uses before selecting one.