Choose the Right IT Outsourcing Services
Among the main reasons why businesses today choose to outsource their IT services fully or partially is because they search for ways to reduce their costs while improving performance.
The overall global spending on outsourcing services will hit $731 billion in 2023, and it will continue to grow annually.
What are Outsourced IT Services?
There are numerous definitions you can find online, but the general essence remains the same.
These services mean a common win-win practice when a company delegates some or all of the IT services to an external company. You can delegate full-scale IT processes to third-party outsourcing firms or let them be in charge of some tech roles.
Digital transformations rule the present world. IT outsourcing has become an extremely popular solution thanks to the pandemic and the switch to remote work across the globe.
According to the statistics, 37% of SMEs outsource at least one of their IT processes today, while there are more than 92% of G2000 companies that choose IT outsourcing.
What IT Services to Outsource Today
Among the most common IT services that can and should be successfully outsourced are:
Network security
Cybersecurity is vital for any business. If you don’t have in-house specialists that can ensure your company has military-grade data protection, to outsource experts who will do it for you.
Cloud services
It concerns any cloud service provided via the internet, be it software, infrastructure, or some platform. They are accessible through the internet or your operating system.
Web design
Outsource designers can help you significantly with your design tasks such as your website UX/UI or marketing presentations, etc.
Support
When you deal with software, it is crucial to have experts who can be in charge of software installation and maintenance.
Al of Artificial intelligence
AI has already become a common practice for companies that want to get better business results and stay ahead of the competition.
Data backup
This is a great way to keep all your business data safe by hiring a third-party company for data backup and recovery services.
Data analysis
Data analysis is a great way to collect and decipher information on different areas of the company. This, gives you insights and actionable information on what needs improvement.
Technology training
Technologies are evolving. That is why you need to train and teach your staff how to deal with the latest versions of various software and tools. Numerous IT services can do it instead of you.
When It's Time to Outsource Your IT Services
When you lack the necessary IT experts
If you are a small company or startup that just doesn’t need an IT department or you want to save your money and time, outsourcing is your perfect choice. This way, you won’t need to pay high salaries for in-house specialists as everything will be handled externally on a monthly subscription basis.
When your in-house experts need to focus on other issues
Even if you have enough in-house experts in your team, it is not always rational to divert them from their main tasks. In this case, it is better to outsource everything that is not in your area of expertise. This way, your specialists can focus on core business goals which will bring you a competitive advantage.
When you have complex software projects
When your company handles complex and long-term projects that require profound tech expertise from your side, it would be much cheaper to opt for IT outsourcing. Besides, a trustworthy IT services provider ensures the highest quality of work provided so that you can rest assured that you won’t face any difficulties on your way.
You want to employ the best technologies on the market
Usually, reliable outsourced IT services employ the latest technologies. And you get these technologies without the need to pay a fortune to set them up in your office. But what is more important, you do not need to teach your in-house staff how to deal with top-of-the-line hardware or software because the IT outsourced vendor will handle everything — from installation to operation.
When you are spending too much on IT services
Owning an IT department is quite expensive. Moreover, the high maintenance costs is the top reason why 45% of companies outsource their IT services today. Another popular reason why 46% of companies choose outsourcing is the lack of the needed skills that in-house specialists can’t provide. So, you need to hire senior specialists, and that also costs a lot.
Types of IT Outsourcing Services
There are numerous types of outsourcing services. But all of them have one thing in common — they are all about hiring external specialists to deal with certain IT tasks. If we speak about the distance differences, IT outsourcing services can be divided in:
Offshoring
Offshoring model means that you hire an IT expert or team that is located far from you. The most popular countries for offshoring today are India, China, and the Philippines. The situation is so because they offer low price tags, tax savings, and political stability, which is very important for business.
If you choose to go offshore, your remote team is far away from you. This means that you need to control everything yourself. And if there are some problems with communication like lack of face-to-face meetings, this option might not be your perfect choice.
Nearshoring
If you are nearshoring, it means that you hire an IT specialist or team that is located in your country or in the neighboring country to yours. Usually, companies choose this model if they want direct communication and have the ability to travel and see the team themselves.
Nearshoring is the synonym for fast communication and cultural closure. However, it also means that your choice of potential candidates is restricted to your country only. So, you may face an issue of finding the right nearshore IT service provider or relevant IT specialists as your country may not have them at all.
Onshoring
Onshoring is the opposite of offshoring. Basically, it is when you outsource your IT services to another city in your country. When you choose this model, you won’t face any difficulties while communicating with an outsourced specialist like language, cultural, or time zone differences.
Unfortunately, very often, onshoring IT service providers lack the needed candidates, which might not be your variant if you need urgent assistance.
Most Common IT Outsourcing Models
If we speak about the relationship-based outsourcing models, here we can divide the cooperation with remote teams in:
Staff augmentation
Staff augmentation means filling the expertise gap with a needed specialist without spending money and time on recruiting. All you need to do is to contact a reliable outsourcing agency.
if you need an expert for a long-term project, the staff augmentation model may become quite expensive for you. Besides, this model requires some time for aug’s onboarding and catching up to speed.
Dedicated team
A dedicated team is a complete team of experts that can develop your product fully. Usually, such teams consist of a project manager, front- and back-end developers, designers, QA specialists, and devOps.
This model of cooperation won’t suit short-term projects as they are quite costly. Besides, most outsourcing companies offer a 6+ month contract for such cooperation.
Project-based
If you have some IT project that you want to develop but lack in-house specialists, this model is for you. It also helps to save your company's management resources.
When choosing this model, you should keep in mind that it gives you little control over your remote team and project. And if you want to add some extra services like project management or business analysis, it can cost you a fortune.
Pros and Cons of IT Outsourcing
Pros
Huge savings
When you opt for outsourcing your IT services, this can save you tons of company resources. This happens because outsourcing companies use low-cost labor pools and they provide you with all the necessary tech stack. Plus, you do not spend money on the recruiting process.
Wide expertise
When you need a rare IT expert or jewel in the IT sphere who can provide high-quality services, outsourcing is your option as the talent pool is not restricted to your city or country. Besides, working with seasoned experts is always a pleasure.
Wide talent pool
As we already told you, when you opt for outsourcing, you have no limits. You can easily hire an excellent specialist that is located in another part of the world with just one click of a mouse.
Quality of services
The beauty of IT outsourcing is that you can hire any expert with a particular skill set you may need for your project. The niche experts will provide the best quality of IT services in a short period of time.
Reduce risks
When you know that you have seasoned IT gurus, you feel safe. That is so because you know that the whole development process will run smoothly even without your constant supervision. Besides, nothing serious will happen after the product is launched.
Maximized productivity
When you outsource your IT services, this means that you no longer need to learn and do things that you are not a specialist in. Instead, you can focus on your profession and core business goals. The outsourcing vendor has enough expertise so that the quality of the received work is higher and faster, which means you get a competitive advantage in the market.
Cons
Possible security issues
When you share your sensitive data with third-party companies, you should always be aware of the security protocols they employ. But this is unlikely to happen with Ukrainian companies like Agilie. We offer 100% transparent contracts for our customers that fully comply with the IT-friendly local laws and regulations.
Language barriers
Communication is key in any business. However, it could be one of the biggest challenges when choosing an outsourcing company. At Agilie, we encourage our team members’ initiatives of learning other languages. Plus, most of them already speak fluent English.
How to Choose an IT Outsourcing Provider?
Choosing an outsourcing provider is hard work as you have to check many factors and compare various alternatives to make the right and informed decision. Here are some of the critical factors that you should study:
Relevant tech experience and knowledge
When you are choosing an outsourcing company, gut feelings won’t help you. You need to carefully check whether a company has strong knowledge and hands-on experience working in your domain.
References
The market reputation of an outsourcing company is very important unless you want to work with someone who always misses deadlines and delivers bad quality services. You should always search for references or contact previous clients to find out the truth about the cooperation with a particular company.
Clear communication
Communication is vital when dealing with remote teams and building strong relationships. That is why the first thing you should do is create a communication strategy, select the most appropriate communication channel and systems for you, and ask your outsourced team to document each step they do.
Data safety
When you work with external teams, you should always stay concerned about your data privacy and the type of data you need to share. The vendor must employ the latest data protection technologies as well as align with local data protection regulations and laws.
Highest quality of services
If you are looking for first-class IT services, you must always ensure that you hire only top-notch specialists. Trustworthy companies always make mock-ups before the final code and then make the necessary changes in accordance with the received feedback.
