Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff.
The said contractor could be overseas or a local one and the work done can range from cleaning duties to IT-related work. Anything is possible!
So why are companies outsourcing and why should you do it too?
In our fast-changing society that is today, companies are relying more on information technology (IT) to conduct their business, be it an online store or website, virtually every company needs IT workers to keep their business running smoothly and can more often enhance it. The more you leverage on IT technologies, the more it will propel every business!
Information Technology is an extremely broad field that can include network specialists, programmers, database administration among many other things. Companies with the need for those kinds of skill sets might not necessarily have the right personnel for the job.
Benefits of IT Outsourcing
Pool of Industry Experts
Since IT is made up of many different aspects, an existing IT employee might not have the necessary skills and knowledge to fulfil the various IT tasks.
This is where outsourcing to a managed IT service provider comes into the picture. Companies can rely on reputable outsourced IT services provider with competent employees that are ready to be deployed with the required skills. That means having access to an unlimited talent pool right at your fingertips!
Cost Savings
IT outsourcing can provide cost savings coupled with quality work. Outsourced IT Services is usually cheaper than hiring a new employee. There is no need to go through the hassle of finding the right person for the job or spending additional resources on new employees. Outsourced IT workers are already well trained with the knowledge and experience with state-of-the-art technology. Additionally, all uncertainties are eliminated as a contract will be provided with precise details of what they can do and what should be done with an attached price.
Immediate availability
Hiring a capable employee with the required skills at the right time is hard. Hiring someone new with such capabilities with short notice is unrealistic. Not to mention the HR procedures a new employee has to go through before he/she is hired. These procedures include interviews, followed by a probation period to ensure that the employee is the right person for the job, which will take time and resources. On the other hand, an outsourced IT services provider has ready IT deployable staff, who have usually at least 1-2 years of experience.
Lesser HR issues
Lesser employees to manage means reduced problems and less work for the HR department. It reduces their burden as they can spend less time dealing with the employment, interviewing, and administration of employee benefits of the IT department. Outsourced IT eliminates the HR process and the time saved can be used to do more productive work.
Imagine this scenario: There is a time-consuming and or mundane task, but your employees are busy with their work and have no time to do it. Outsourced workers are able to complete those tasks instead. Less important tasks can also be done by outsourced workers so that the company can focus on vital tasks and growing its revenue.
Who should consider Outsourced IT?
Outsourced IT is not for every organization, but if your company meets any one of these criteria, you should consider outsourcing IT.
Lack of a dedicated IT department
If your company does not have an IT department, has only limited resources to handle IT issues or require external IT consultation and support, IT outsourcing is a good solution.
The need/want to stay lean in internal manpower resources.
This helps to reduce the burden on the HR team as it is easier to manage fewer employees. It is also easier to terminate contracts agreement with Managed IT Service Provider than to terminate its employees to reduce company expenses.
Fast time-to-market.
Outsourced IT services provider can help to work on projects immediately instead of going through the time-consuming process of hiring and building an internal team. This is especially beneficial whenever there is a urgent project deadline to meet.
The need for niche expertise
If a project the company is working on requires some specialized help, outsourcing to a managed IT service provider with that expertise is more often the better option.
Possible Disadvantages
Everything has its demerits.
The need for concise communication
When communications are not clear, it can lead to undesirable outcomes. This is especially true if the contractor is from another country with a different time zone or even language, which can make communicating with the other party tough.
Outsourcing a task means that you are placing your trust in the contractor with set expectations. In some cases, the work that they have done might not be up to your standards which can also often be due to miscommunications.
Increased threats to security
Since there are more people with access to the company’s networks, data or resources, it makes the company more vulnerable. However, this can be somewhat mitigated with local reputable companies as they bound to the local laws and usually have good client references.
Existing employees may fear losing their jobs
If employees watch their colleagues get replaced by outside contractors, they might start to get worried that they themselves will be replaced too. This will have a negative impression on the employees and can reduce productivity. However, this can be reassured by the company to the employees that outsourcing is there to help them to reduce their workload
Tips for successful outsourcing
1 . Communication is key
Having consistent and open contact with the contractor is imperative to the success of the project/job. If any unexpected situation arises or if there are any last-minute changes, communicating it clearly with both parties will be necessary for desired results.
2. Select vendors carefully
Always check the vendor’s reputation before signing a contract. Regretting after the contract is signed is the last thing you would want to happen.
3. Establish good relationship with the contractors
Since they are the ones who will be doing the work, they should be treated like they are employees of the company. This will ensure consistent and quality work from them or even discounts for contract extensions etc.
4. Don’t switch around IT service provider so quickly
Whenever you face an issue with your IT service provider and evaluate the problem together. With transparent and frequent communication, it helps to find out the root of the recurring problem.
If you need considering to engage a vendor for an Outsourced IT service, iClick Softwares provides this service to assist you with company IT problems.
