Outsourcing IT: A Smart Strategy for Growing Tech Firms – Outsourcing is a popular method for companies struggling to streamline their business operations, and computer technology businesses are no different. In fact, 78% of companies indicate that they have a positive experience with their outsourcing providers and cite the advantages of outsourcing.
What Is Outsourcing?
Outsourcing involves contracting out specific business functions to third-party vendors or external service providers. Outsourced functions can be anything from back-office functions to niche IT services. The partnership could be project-based or long-term associations, which allow companies to scale their operations as and when required.
IT Outsourcing: A Game Changer for Tech Companies
For technology firms that are growing, IT outsourcing is especially beneficial. By leveraging outside IT resources, companies can augment or even substitute in-house IT personnel, lowering operating expenses considerably. In one study, 96% of executives considered service providers to be vital for creating and analyzing data, again indicating the significance of outsourced IT services.
Typical IT Services That Are Outsourced
- Application/Software Development: Entails creating, testing, and implementing software applications.
- Technical Support & Help Desk: Offers customer service for software or technical problems, usually through live chat, phone, or email.
- Web Design: Deals with the graphical and user experience design of websites.
- Web Development: Deals with coding, programming, and upkeep of websites.
- Network Management: Oversees your network infrastructure’s performance and security, such as firewalls and routers.
- Data Entry: Entails typing in information or transcribing data into databases.
- Data Analysis: Derives conclusions from data to make business choices.
The Strategic Benefits of Outsourcing
An increasing number of organizations are outsourcing to face the challenges of an increasingly competitive market. Some benefits that outsourcing gives to technology organizations are enumerated below:
Cost Savings: Outsourcing reduces the cost of operations by not having to employ internal staff. Companies can save as much as 70% of labor costs by outsourcing, eradicating recruitment, training, and wage-associated expenses.
Time and Effort Savings: Outsourcing saves businesses time since third-party providers do work that would otherwise consume in-house resources. In a recent survey, it was discovered that 24% of expanding businesses outsource for greater efficiency and 18% look for professional expertise.
Access to Global Talent: Outsourcing opens the door to a vast number of highly skilled people from around the globe. In the US alone, nearly 300,000 jobs are outsourced each year, giving businesses access to talented experts who may be hard to locate locally.
Scalability: Outsourcing enables tech firms to grow rapidly by introducing resources to meet increasing business needs. Research discovered that 37% of small businesses outsource at least a single vital business activity, which indicates how outsourcing assists in growth and expansion.
Access to Sophisticated Technology: Outsourcing also enables companies to access sophisticated technologies. Over 51% of technology leaders mention that outsourcing software and application maintenance, which helps businesses keep up with digital transformation trends, is their reason for outsourcing.
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IT outsourcing is a rational option for technology businesses that would like to expand their business, save money, and access skilled expertise. Outsourcing specific business processes allows businesses to enhance operational efficiency, foster innovation, and remain competitive in the rapidly changing technology environment of the present.
Glossary of important terms
Talentus: a global company that provides US companies with reliable IT services, near-shore talent, and support up to their necessities.
Information technology (IT): the use of computers, storage, networking and other physical devices, infrastructure and processes to create, process, store, secure and exchange all forms of electronic data.
Help desk: is the individual, group, organizational function or external service that an IT user calls to get help with a problem. Service Desk by IBM.
