Outsourcing of IT: Worth it or Not


IT support worker using headset

Information technology is one of the most crucial departments in any business. Nowadays, employees rely on computers to streamline business processes, engage with customers, and communicate better. 

Computers run the risk of failing and require maintenance to ensure functionality. And while large businesses can afford to hire and keep an entire IT department, small or start-up businesses may not have sufficient resources to do the same. This is why many consider outsourcing IT instead of hiring in-house. But is this choice worth it? 

Outsourcing IT services has its own pros and cons, and this article will show you how outsourcing is still worth it. 

Pros of Outsourcing

Outsourcing is worth it as it provides many advantages to businesses making it a cost-effective investment, especially for small businesses. 

  • Cheaper Software Development Cost

Technology evolves at a fast rate and hiring and training an in-house IT department can lead to expensive overhead costs. This can snowball into many financial problems, especially for small or new businesses. In worse cases, the inability of the in-house IT department to keep up with the times can adversely impact the operations and branding of the business.

  • Trained and Experienced Software Development Team

When you outsource IT services, you’re able to hire and work with a diverse software development team with different skill sets. Having these experts on board will help you better understand how the market works from a technical and domain perspective. 

  • Save Time From Hiring

Hiring an IT department requires time, and the time you spend on the recruitment process can slow down your business’s operations. You won’t have to worry about any of these when you outsource IT services, as the hiring and training have already been done. You can just choose who you want to hire and maximize their experience without spending too much time hiring. 

  • Access to The Best Talents

One of the biggest benefits of outsourcing IT services is being able to access some of the most experienced software development teams from different parts of the world. There are now many collaboration tools that make it easy for your business to work with a team, even if they’re not in the same room. 

  • Flexibility and Scalability

Outsourcing IT services gives you a sense of “on-demand” service. This means you can hire a team based on your current needs and make adjustments as your business grows. For instance, you can outsource three IT professionals today and then add more once your business expands. This kind of freedom allows you to scale your projects fast without wasting time and money. 

  • Focus More on Your Business 

Outsourcing allows you to focus on your business more as you’ll have lesser things on your plate but still guarantee the efficiency of your IT team. Focusing on your business will bring you better results as there’ll be nothing to distract you from reaching your short- and long-term business goals. 

Cons

Outsourcing an IT team comes with challenges, but these can easily be mitigated. When you outsource, expect the following:

  • Lack of Control

It’s common for business owners to feel uncomfortable handing over management and processes to another outsourcing company. This loss of control can be challenging for business owners, affecting their relationship with the outsourced team. 

The solution: Transparency should be the focus of all the parties involved. You should also be vocal about the elements of the management structure you want to retain control. 

  • Cultural and Communication Issues

A recent study showed that about 90% of businesses believe that communication is one of the biggest challenges when outsourcing. This problem can occur due to many different factors, such as language, culture, and the unique nature of the parties. 

The solution: Outsource an IT team with a good command of English and utilize face-to-face video calls as often as possible. Individuals leading any meetings should also have excellent facilitation skills. 

  • Lack of Experience Working With Remote Teams 

Working remotely has become a norm. In fact, many businesses worldwide are totally remote. However, for businesses that are still working in a physical office, working with an outsourced team remotely can pose problems. 

The solution: State the definition of success before the project starts. Make sure that both parties understand the goal of the project. 

It’s Worth It 

Outsourcing an IT team has its challenges but doing so is definitely worth it. Just make sure that you’re hiring the right team: one that’s professional, experienced, and up-to-date with the latest trends in technology! 

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