Let’s begin with a small rundown about outsourcing in the IT industry. It’s a practice of contracting with third parties like outside companies or separate freelancers to delegate some processes, tasks, issues, or even departments of your company. Outsourcing in IT business has already become a common thing. In 2018, the global cost of outsourced services achieved $85.6 billion, and the sum is expected to grow in the near future.
So, if you use it correctly, outsourcing can save your money, increase the revenue and provoke the growth of your organization. However, every medal has two sides. Herewith, outsourcing has its loss and gain to be aware of prior to choosing this way to go. And here we are to reveal the main outsourcing advantages and disadvantages and to give due weight to the approach before you use it for your IT business in 2019.
The Pros of Outsourcing in 2019
There is good and bad news. Let’s begin with a good one and observe the advantages provided by the approach like reduced costs, increased efficiency, improving your business, etc. that you can get if outsource certain IT functions of your business in 2019.
Gaining Access to World-Class Tech Talents
The access to the pool of the world IT experts is one of the clearest reasons to outsource in 2019. When outsourcing, you can be sure to fill any position getting the industry experts in your team, because you can work with pros over the globe.
Thus, for example, you can hire software developers in Ukraine, the country is a leader in Eastern and Central Europe, where the number of qualitative and experience IT professionals is going to be over 200,000 by 2020.
Reducing and Controlling Operating Costs
The previous issue is a ground for this one. Herewith, correctly chosen contractors in other countries will have lower prices for different services. What’s more, you have not to pay any salary, but for the results and/or hours the outside employees worked actually. All that reduces the costs and can even increase the revenue.
Improving Company Focus
There are lots of functions to be made in the IT business. It’s challenging enough to accommodate all of them. Also, it requires more employees in your on-site office to save the quality of the work meaning more spendings. Outsourcing a part of the tasks and/or processes, you free time for more crucial tasks to focus on. Thus, your internal staff can rivet attention on the core offerings of your business to improve the service without overpaying, because of freelancers’ work is much cheaper as a rule.
Increasing Efficiency for Time-Consuming Functions
You can increase the efficiency of some time-sapping tasks and functions by outsourcing them to the outside industry experts. Though the idea of it can frighten you, there are several reasons to do that.
At first, the third party is motivated to do its best to stay in business. But that works only if you choose a trusted outsourcing company with a strong reputation. It can perform tasks better and produce higher quality work. What’s more in the case, your internal resources will be free for other purposes. Besides that, having workers in the other countries in different time zones, your business can be effective around-the-clock even when you sleep literally.
Freeing Internal Resources for Other Purposes
As we have already mentioned, a big stack of tasks and functions requires lots of human resources and as a result growing costs, no time for your employees to study and, thus, your company can’t go forward as well. When you outsource certain tasks or department, your internal resources can focus on core tasks giving a capability for your in-house workers to improve their work-based learning needs in certain areas of the IT field, be more focused, agile, productive and adaptive.
The Cons of Outsourcing in 2019
It’s high time to reveal the dark side of outsourcing in 2019 and check out the disadvantages you can meet on the way. Though the list of cons is a little bit shorter than the pros, you’d take them into account making a final decision.
Firstly, working with employees from different countries you can meet some difficulties with communication. Different languages and, what’s more important, time zone aspect are the reason that you can’t communicate with your outside team as easy and regular as with in-house resources. That can slow down the process.
Impact on Company Culture
Hiring outside employees, because of the benefits mentioned above, you’d mind about your in-house staff as well. The outsourcing can negatively impact on your company culture as a result of increased anxiety of your workforce. It is due to the fact that your internal workers can feel disposable or threatened worrying about their job.
Loss of Control Over Policies and Procedures
Outsourcing some IT tasks, you’re to be ready that you would have a lack of control over some policies and procedures. In the first instance, remember that you hire a contractor, not an employer. Besides, co-working with the outsourcing company you delegate the control giving only the directions what you want to get in the result. So with that, delays can take place.
Threats to Data Security
One of the crucial aspects of your IT business to take care of is confidentiality. What’s more, that’s the first thing to be compromised when you outsource. Just because you’re to share some confidential information about your project, product, and service with the third company or freelancer. The leak of the data is what you’re to mind always (even if it’s about your in-house employees, by the way). However, a double check is necessary to make sure that your contract ensures the protection of such sensitive data, as well as a penalty clause, is included when you’re faced with such an incident.
Final words: How to Outsource Successfully?
The high popularity of outsourcing has several reasons like saving money of your IT business, increasing efficiency, fast company growth, but you’re to mind the disadvantages to meet as well. Before you start to outsource a part of the IT processes, take into account all aspects described above and weigh all loss and gain. That will help you understand if the approach fits your business as well as the company’s goals in 2019 and if it's a way to success. Only if you use outsourcing correctly, it can be useful in achieving your aims and improving your service.
DDI Development company brings a unique combination of e-business experience and solid technical proficiency to provide high-quality web and mobile digital solutions in a friendly and creative way. We help businesses achieve their goals by offering professional services. Our expertise spans into several industries including e-commerce, CRMs, e-learning platforms, recruitment and financial systems, etc. Our experienced team has delivered 150+ completed projects.