JANUARY 1, 2022
9 min read
Today, internet access is growing, and more and more businesses go online. Let’s take e-commerce as an example: about 2b people purchase goods and services on the internet every year, and e-retail revenues are predicted to reach $5.4trrn in 2022. The statistics are indeed remarkable, even though e-commerce is just one of numerous online businesses. Can you now imagine how big this is? That’s right — the scale is huge, and this is why IT outsourcing services are becoming extremely sought-after these days.
So, what is IT outsourcing services exactly? This is a practice of hiring external service providers to do some or all the IT functions that your business requires. Simply speaking, you move certain responsibilities from your in-house IT staff (if you’ve got one already), letting them focus on other important issues. This also allows reducing costs while maintaining steady growth and productivity.
This business strategy was first recognised in 1989, and it didn’t take much time for outsourcing of IT services to become a crucial component of business economics. Software and application development, hosting, technical support, staff augmentation, and digital marketing are just a part of multiple services provided today.
DashDevs has a big expertise in delivering a variety of IT services to businesses of different sizes and categories. That’s why there’s no doubt the information below will be helpful to all business owners and anyone interested in delegating IT tasks. Find out the main reasons why companies outsource IT services, the benefits of the process, and tips on how to choose a provider successfully. Ready? Let’s get it started then!
3 Top Reasons Why Companies Outsource IT Services
Why are IT outsourcing services companies so in demand today? Let’s elaborate on it!
1. Cost Reduction
The need for outsourcing services emerged from the desire to cut costs — no business wants to pay the extra money. But how is this possible? Well, first is lower labour spendings. If you go to offshore areas and choose to outsource in developing countries with cheaper economies — you can save on salaries a lot. For example, statistics show that IT experts in America make about $133k a year, while Indian IT employees earn approximately $56k during the same period.
But salaries aren’t the only thing to save your money on. You also don’t have to spend on hiring and training. There’s no need to pay for extra office space and equipment. Doesn’t that look like a jackpot?
2. Access to New Talent Pools
One of the most important reasons to outsource IT services is to reach the global talent pool. No matter what kind of specialists you need — an Android Developer or a QA engineer — you’ll surely find experts who’ll correspond to your requirements.
However, professionals might be a challenge to find in case you’re not IT trained. How to make sure you’re hiring reliable providers and talented developers? You may ask for certifications like CISSP, Microsoft Certified Azure Solutions Architect, and similar. But, surely, experience is still much more significant, so getting acquainted with potential providers’ delivered projects is always a great idea. Remember — qualified doesn’t always mean well-experienced.
3. Focus on Your Core Business
The best decision you can make as a business owner is to let your employees concentrate on what they can do best. When their focus is distracted by complex IT tasks, productivity, or performance decrease, it may result in a decline in both sales and overall profit. Not so exciting, right?
In a word, outsourcing allows you to concentrate on your strengths and core competencies while another company, with relevant skills and expertise, focuses on theirs. Such collaboration always brings a positive outcome.
What Are the Benefits of Outsourcing IT Services?
If you’re still not sure if your company should look for third-party help and guidance, read the following advantages of outsourcing IT services to alleviate your concerns:
1. You quickly implement new technology. Do you have a new project in mind and want to start realising it the soonest time? This is possible with an experienced outsourced IT service provider, as it’ll have trained and skillful experts with relevant qualifications. Imagine how much time and other resources it’ll take to hire your own in-house team for such a purpose.
2. You increase productivity. When the workload is divided among the right specialists, tasks are performed better and faster. And another, not so obvious reason is the difference in time zones you and IT team members live in. It allows maintaining an uninterrupted workflow.
3. You reduce risks. One of the core benefits of outsourcing IT services is minimising the risks. In what way? IT providers you hire have specific industry knowledge. For example, they’re aware of government regulations or security standards — things you may have little or no clue about. Moreover, their experience and knowledge often save businesses from costly wrong decisions.
4. You avoid micromanagement. Every project has its project manager (PM). These are specialists who control how the project is going, communicate with the team on a daily basis, and keep you informed on matters related to you. You won’t have to manage IT project’s tasks, and this will save lots of your time.
5. You benefit from flexibility. The world is constantly transforming, and so do your customers’ needs. This is the reason why the requirements of a digital project you build on may change as well. That’s why cooperation with an outsourced IT services provider is so valuable for your business — their development approach is flexible. For instance, DashDevs uses Agile methodology, which allows promptly reacting to any changes in a project with minimum loss of resources.
What Are the Types of IT Outsourcing?
A type of IT outsourcing service depends on where a provider is headquartered. Generally, they’re divided into 3 groups:
1. Offshore IT Outsourcing. This type refers to providers located overseas. Typically, these are developing countries of Asia (for example India, China, or The Philippines) or Eastern Europe (Ukraine or Belarus). By choosing offshore outsourcing, you benefit from savings on taxes and salaries while having all your IT tasks successfully completed.
2. Nearshore IT Outsourcing. This means your remote IT support is based relatively closer to you — somewhere in neighbouring countries. It also brings certain advantages: similar or the same time zone, language, and currency. However, this option isn’t always as profitable as offshore outsourcing.
3. Onshore IT Outsourcing. In this case, your IT team is going to be located in the same country as you. It also often implies coming from the same economic zone. Benefits are equal to the nearshore type — the same time zone, language, culture, and mindset. On top of that, onshore providers are believed to be more accessible. However, there’s one important disadvantage — you pay more for the services that can be performed for a much lower price.
Most Popular Outsourced IT Services
As a matter of fact, there’s only one main condition for outsourcing — you should be able to do work online. That’s why a list of outsourcing services is huge. Below you’ll find just a few of the most requested ones:
Mobile App Development
This is one of the top outsourced services today. It’s hardly surprising — there are almost 7m apps available today for download on most popular stores like Google Play or Apple App Store. Here’s more astonishing statistics — an average user has about 40 apps on their smartphones. Are you still hesitating if app development is worth it? Of course, it is! A good app provides a personalised experience, builds customer loyalty, and, as a result, increases sales and profit. Isn’t that what you want for your business?
Website development is another most commonly outsourced service among businesses. Why? There are about 5b active internet users in the world. That’s almost 60% of the whole population! On average, they spend 190 minutes a day online. By the way, they do it predominantly on phones, and you need to make sure your outsourcing IT team can build responsive web design for you.
Digital marketing (or online marketing) is the advertising of brands using the internet and search engines. Such campaigns appear on mobiles, computers, and a variety of other devices. People spend tons of time online, and that’s why digital marketing is crucial for your business success. Among the most effective digital marketing techniques are content marketing, marketing automation, big data, AI, and ML. You can outsource all of these services as well, letting professionals do what they’re best at.
Staff augmentation is an outsourcing strategy of hiring IT specialists on an external basis. Outsourcing companies give businesses access to an engineering talent pool, which allows them to gather a team fast. In addition, staff augmentation providers often take care of recruitment. This also helps find experts comparatively quickly. Another benefit is the ability to choose a level of control over the development project. You may either completely or partially delegate it to the services providers or be fully involved in the process yourself.
Tips for Choosing the Right Outsourcing Provider
To take advantage of a partnership with an IT services provider, you ought to select wisely and thoroughly. Here’s what DashDevs has to recommend:
- Define your business goal. Before you start looking for external IT help, you need to clearly understand what kind of product you want to create, its purpose, and what resources you have to bring it to life. Remember — no outsourcing company knows your business better than you.
- Review the providers’ reputations. Use platforms like Clutch or similar to learn more about your potential partners. See what their clients think of them, what kind of projects have they delivered, what their experience is, and so on.
- Compare services and prices. It’s always better to cooperate with a company that delivers digital solutions for businesses similar to yours. Also, pay attention to the price and keep in mind that the cost doesn’t always reflect the final quality.
- Legalise cooperation. A contract and non-disclosure agreement (NDA) should be prepared and signed to protect both parties and ensure everyone is aware of the terms, budget, and responsibilities.
Common Myths about IT Outsourcing
Even though IT outsourcing services have been on the market for many years, there are many misconceptions about them. Let’s debunk a few most popular ones:
1. No control over the project. Often businesses fear failing to control important project processes. But by cooperating with a reliable partner, you get regular updates and documentation. Besides, all critical project decisions are never made without your approval.
2. Outsourcing is only for big businesses. This is another myth. The market of outsourcing is so huge that companies of all sizes can undoubtedly find an IT services provider. For example, DashDevs works mainly with small and medium businesses.
3. You get a low-quality product. Some believe that in-house product development is much more reliable. This is probably because the cost of outsourcing is lower and many associate it with poor quality. However, the final result doesn’t depend on the price in the first place. It rather depends on the specialists you hire. Choose experienced companies with positive reviews, and you’ll get a first-grade solution.
DashDevs’ IT Outsourcing Solutions: How Can We Help Your Business?
If you’re planning to build a complex digital product, hiring a development company is certainly more advantageous than looking for freelancers or gathering your own in-house team. With a professional provider, you get everything you need, including experienced specialists. For example, DashDevs has Android and iOS developers, designers, QA engineers, project managers, business analysts, etc. We delivered hundreds of digital solutions, and we’re proud many of them have become top products in the market used by thousands of people.
Thus, if you need some guidance with web or app development, UX/UI design, market research, Big Data & Analytics, team augmentation, or whatnot — we’ll be happy to help you out! Feel free to contact DashDevs and request any information you’re interested in!