The Benefits of IT Outsourcing

IT outsourcing companies help in reducing cost. Availing IT outsourcing services from an Outsourcing Service provider helps in achieving better quality and flexibility. Selection of an appropriate outsourcing model can deliver cost benefits along with quality and flexibility. Outsourcing has progressed from being the choice of large enterprises to a business necessity. Due to this great demand for outsourcing services the numbers of players are aplenty. It is therefore important to asses several outsourcing vendors before deciding on the choice of the right outsourcing provider. Apart from track record, it is also important to find out if the IT outsourcing services provider is a Global IT outsourcing company.

Other than costs and quality, there is another important benefit of IT outsourcing. By engaging an IT outsourcing service provider, the in-house resources can concentrate on core-business activities. Similarly it is also possible to offshore and outsource, if the service provider is a Global IT outsourcing company. The cost benefits of offshore-outsourcing are also significant. IT outsourcing also helps in knowledge transfer. Therefore, it is important to choose a Global IT outsourcing company with significant experience in multiple geographies, verticals and technologies. IT outsourcing helps to save several millions of dollars.

IT outsourcing has become a crucial business decision these days, with the emphasis on cost-cutting in a post-economic- crisis scenario. The service provides flexibility to that a company can leverage to meet changes in resourcing requirement during a volatile economic period. IT outsourcing has become an integral part of many businesses. It is pre-dominant in the areas of staffing, consulting, research and as well as core and non-core IT functions. Thus IT outsourcing delivers the benefits of shared expertise. Staffing is a very important benefit of IT outsourcing. Many companies have very few in-house IT staff. By hiring contract employees, companies save largely on benefits and also do not have to face any legal obligations, in case they decide to right size,during economic downturns.

Traditional outsourcing models have drawn a blank, when it comes to quality and flexibility. Outsourcing has not achieved its complete objectives due to communication flaws created by geographical limitations. The efficiency and outputs are low in a traditional outsourcing model. The outsourced provider often finds it difficult to follow the process of in-house staff due to communication gaps, lack of proper Knowledge Transfer (KT) and this leads to severe quality issues.

Some of the latest developments in Outsourcing include Co-sourcing and Ethical Outsourcing. These models help to overcome the limitations in a traditional outsourcing mode of engagement. Co-sourcing mode of engagement overcomes this flaw, as in this model the vendor’s resources work at the premises of the companies. The company also retains business control, unlike a traditional outsourcing mode of engagement. In Ethical outsourcing mode of engagement, companies can engage the resources of the service provider, for non-core tasks and also enjoy a flexible resizing option, devoid of statutory obligations.

IT outsourcing is an important element in globalization. It is responsible for the creation of job opportunities, increasing trade and economic activities among nations. IT outsourcing is a multi-million dollar industry and the stakes are quite huge for all those directly or indirectly associated with it. Clearly if Quality and flexibility are important objectives then IT outsourcing through the ethical outsourcing and Co-sourcing model would be the right choice.

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