Pros and Cons of IT Outsourcing

IT OutsourcingThe importance of IT outsourcing has grown significantly over the last few years. Technological innovations such as cloud computing have paved a way for a great influx of Information Technology within all types of businesses.

When it comes to Information Technology, consumers often refer to reliability as the main factor in evaluating a company's performance. Data backup services and cloud archiving have become integral parts of every company that is willing to ensure business continuity. Demand for quick decision-making and affirmative action is as relevant as ever in the modern business environment, and companies must adapt or fall behind their competitors.

Big companies with thousands of employees behind them easily dominate the market with sheer numbers, but their business strategies are not nearly as flexible when it comes to reacting to minor changes in consumer behavior. They often fall short of providing the most efficient solution on time because of the cumbersome corporate management procedures.

The ability to micromanage their projects is one of the few competitive advantages small businesses have over huge corporations. As a small business owner or manager, you are able to cut the time taken between pinpointing a problem and solving it, effectively moving ahead of your competition.

However, even the best managers of small businesses will run into a severe lack of resources. In order to combat this problem, you must always have access external resources at will.

IT outsourcing is part of a growing trend of relaying urgent tasks to other companies or individuals by means of a one-time contract. It has many benefits when compared to traditional forms of employing internal IT staff. However, it also carries several disadvantages that need to be addressed before you decide to implement it for your business.

The Advantages of IT Outsourcing

  •     Flexibility. The ability to divide large projects into several sub-projects and outsource each of them individually.

  •     Targeting. The outreach for top experts in the field most suitable for the job at hand.

  •     Efficiency. Less time taken overall to complete and finalize a project.

  •     Reduced expenses. Money is saved on hiring costs and additional operation expenses by only paying for the work that is done.

  •     Managed services. Outsourcing day-to-day IT tasks to IT consultants, means less time and money spent on training internal staff.

  •     Focus. Your company's attention is maintained on its primary business goals, having left the IT tasks to professionals.

The Disadvantages of IT Outsourcing

  •     Lack of coordination may be an issue that needs to be resolved. Different people working on different sub-projects won't cooperate sufficiently on vital intersection points, which may result in a need for a project manager.

  •     External IT experts may be unfamiliar with the infrastructure of your business. Consider on-boarding time needed for the consultants to understand your environment.

  •     Shared responsibility. Your company's performance will rely on external factors.

The list paints a picture of a service that may not always be very well suited for use by a big corporate body, but could become a competitive edge of a smaller or medium sized business.

Use established providers of IT outsourcing to ensure that your business will always have a dependable service to rely on in your day-to-day IT tasks, without spending extra money on additional employees.

It may not be wise to rely on IT outsourcing in strategically important tasks pertaining to your company's specialization. However, maintaining a regular stream of managed services can not only provide a cost-effective way of dealing with day-to-day problems, but also ensure that you will have the readymade infrastructure to quickly execute external projects should the need for it arise unexpectedly.

Click me