Henry Ford once said, “If there is something we can’t do more efficiently, cheaper and better than our competitors, it would be better not to do it. We should hire someone to do that job who does it better than we do”. It isn’t easy to disagree with his beliefs. These words are significant today, […]
Henry Ford once said, “If there is something we can’t do more efficiently, cheaper and better than our competitors, it would be better not to do it. We should hire someone to do that job who does it better than we do”. It isn’t easy to disagree with his beliefs. These words are significant today, at a time of rapid development of new technologies, universal access to information and growing competition. So if you are thinking about outsourcing IT services, be sure to read this article! You will find out why many companies decide to outsource IT and what benefits it can bring to your company.
What is IT outsourcing?
Outsourcing of IT services consists of delegating IT activities to an external company. It is an ideal way to reduce IT equipment maintenance costs and use specialised IT staff without the necessity of hiring new employees. It also guarantees immediate access to the required knowledge and know-how.
Why do companies outsource IT?
If we consider why do companies outsource IT services, we will come to some critical statements.
According to the Global Industry Analytics report, by the end of 2020, the value of outsourcing of IT services may exceed USD 220 billion. It is also estimated that this market’s value is expected to grow by around 5% annually up to 2024. Where does this trend come from? There are many reasons why companies decide to outsource IT services. Among the key ones we should mention:
- Effectiveness – services ordered within the IT outsourcing are delivered on time, according to the client’s guidelines,
- Lack of resources – companies often do not have internal resources and know-how,
- Strategy – entrepreneurs expect more business flexibility,
- Implementation time – the long process of creating internal structures discourages them from developing,
- Personnel shortages – companies do not have qualified staff,
- IT qualifications – high turnover of IT staff makes it difficult to implement projects,
- No restrictions – possibility to use the services of international suppliers,
- Rational budget management – IT outsourcing provides an ideal price/quality ratio,
- Easy business diversification – outsourcing gives the possibility to transfer already owned products to the online world,
- Stable development – outsourcing IT services means faster digital transformation and increased competitiveness.
In 2020, the most frequently commissioned tasks in IT outsourcing included the creation and management of applications, IT security and all system and R&D implementations.
What are the benefits of outsourcing IT services?
Comprehensive IT services outsourced to an external company provide many benefits for both the business and the employees, because:
- Reduces costs – When planning the implementation of a large IT project, updating the current system or creating an application. It is unnecessary to increase the number of employees. IT outsourcing allows delegating to an external company necessary tasks which are often not performed systematically. If they were entrusted into an employee’s hands, it could turn out that the number of hours worked by the worker is much lower than the range specified in the employment contract. As a result, IT services’ costs are significantly reduced and do not burden the company budget.
- Guarantees the support of specialists – IT outsourcing gives the possibility to benefit from the specialists’ services, who perform their tasks with full commitment and professionalism.
- Enables more effective use of working time – activities entrusted to an external company do not involve employees in the company to better take care of their duties and spend their working time on activities serving the company’s development in its primary specialisation (so-called core business).
- Increases access to the latest IT technologies and know-how – IT outsourcing companies work on the most advanced systems and software, using high-quality hardware that customers do not have. This not only speeds up work but also ensures the safety of your project.
Running a business involves many responsibilities. If you decide to outsource IT services, you can be sure that a group of highly qualified people will take care of their duties with full commitment and professionalism. At the same time, you will continue to develop your business.
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