IT outsourcing is the business practice of using external providers to handle information technology functions, i.e. software development, infrastructure solutions, software support.
Popular reasons to outsource being access to better skills, price to quality ratio, ease of upscaling. Companies also often outsource data storage because it is cheaper to contract a third party than to buy and maintain their own data storage devices and facilities.
Advantages of Outsourcing
Reduced Expenses
You get to enjoy significant cost savings when you outsource to a country with lower production costs: a lower cost of living for employees, meaning lower salaries, as well as lower infrastructure and operational costs.
Significant Time Savings
When you partner with an outsourcing vendor, you don’t have to advertise for, interview, select, and train new in-house employees, all of which can be very time-consuming. You can only improve the qualifications of your employees and give various materials, such as on Studocu.com for further study.
Access to Global Talent Pool
Outsourcing allows you to reach professionals that may be in short supply or unavailable locally.
Ability to Upscale Fast
You’ll be able to work with new clients and take on new projects without having to spend time on the processes described above.
Uninterrupted workflow
Your business will function round the clock thanks to the time difference between the in-house team and the outsourcing vendor’s team.
The Disadvantages of Outsourcing
Language Barriers
The language barriers can result in miscommunication and wasted effort unless you and the vendor you partner with have at least one language in common.
Time Difference
This can be a curse as much as a blessing, and in the worst cases it can significantly hamper the communication flow between you and your outsourcing partner.
Long Distances
Extremely long distances between you and the outsourcing vendor can turn business trips into an expensive and tiresome experience.
Different Work Habits
Different Work habits can be the result of different cultural environments, can interrupt your established workflow, and will definitely need getting used to.