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- 1. You save on labour costs
- 2. You get access to a large talent pool
- 3. You do not have to hire additional resources
- 4. Access to state-of-the-art technology
- 5. Improved business focus
- 1. Lack of control
- 2. Lack of communication
- 3. Impact on existing employee morale
- 4. Intellectual Property theft
- 5. Product quality
The world of IT is diverse—and agile. IT Technologies evolve and change faster than the phases of the moon. This constant evolution makes it difficult for companies to invest significant resources for quality work to adapt to these growing needs. Additionally, budgetary limitations can often overshadow needs and require reduced costing, which can cause you to lose out on a specialized workforce.
With customers demanding nothing less than the very best—often with the latest and greatest tech around, what can you do to ensure quality work, reliability, viability and talent on-demand with reduced costing?
OUTSOURCE!
Is outsourcing common? What are the key factors that drive IT outsourcing?
Whether you’re looking to find affordable talent or gain a competitive edge over your competition, outsourcing can help you stay on budget and ensure quality. According to Deloitte, the $92.5 billion outsourcing industry will show no signs of slowing down in the years to come. The main reason for this growth is an industry trend that pushes organizations to be leaner, favour reduced costing, and be more adaptable.
What is outsourcing?
Outsourcing is hiring a third-party organization for development, IT maintenance, finance, compliance or other services. In the world of IT, outsourcing means hiring another organization for services that would either be cost-prohibitive or are outside your core area of expertise. A popular example is outsourcing IT maintenance or development work to a different company.
If you’re thinking of outsourcing, you’re not alone. Well-known global brands such as WhatsApp, Slack, Alibaba and many more have outsourced development needs to ensure quality work with reduced costing. Additionally, research from IBM revealed that organizations who are growth seekers use outsourcing as a tool to optimize their business. The report also stated that only 28% of organizations use outsourcing for reduced costing.
Top 5 advantages of outsourcing your IT needs
It is essential to make an informed business decision. You must be clear about the advantages that outsourcing your needs, such as outsourcing your app development and other IT needs, will provide to your organization before making a move.
Here are the main reasons why you should try outsourcing:
1. You save on labour costs
Reduced costing is a primary motive for outsourcing. Outsourcing helps you access a world-class pool of talent with the expertise you need without compromising quality work. An outsourcing provider with a global talent pool such as Volumetree can help you find the right talent at the right price. Additionally, you do not need to manage risks such as regulatory, unions and licensing—which are now the responsibility of the company to which you outsource.
2. You get access to a large talent pool
Outsourcing helps you to get access to world-class talent from around the world with the specialized skillsets that you need.
3. You do not have to hire additional resources
Hiring a full-time resource is expensive—each resource requires training and benefits in addition to salary, raking up your expenses and severely limiting the number of people that you can hire. With outsourcing, you can save all these costs and invest in getting an additional outsourced workforce from your provider.
4. Access to state-of-the-art technology
Outsourcing helps you to access world-class technology by outsourcing elements of your product, project or solution that are beyond your core area of expertise.
5. Improved business focus
Outsourced technical talent will drive business growth for you by ensuring timely delivery of your products and substantially reduce your time to market.
Top disadvantages of outsourcing your IT needs
Despite its numerous benefits, outsourcing can also have some drawbacks. Some of these drawbacks include:
1. Lack of control
It is often difficult to maintain the level of control you have on in-house employees than outsourced talent.
2. Lack of communication
Although the lack of communication between you and your outsourced partner is rare, it may happen due to geographical restrictions. Some of the reasons why you may face communication issues include:
- The time zone your outsourcing provider is in
- The speed at which you receive a response from your provider
- Accent and language barriers
3. Impact on existing employee morale
On-premise employees may feel demotivated and redundant.
4. Intellectual Property theft
Many innovators are scared about the theft of their intellectual property by their outsourcing provider or being used to clone their platforms. Avoid IP theft with contractual agreements that legally prohibit such activities.
5. Product quality
A low-quality product from your vendor can lead to disappointment and revenue loss. You must discuss and include the expected quality levels in your contract to ensure that you get the most out of the product delivered to you.
As a business leader, you must carefully consider the pros and cons of outsourcing before you decide to make the switch. Once you believe that the pros outweigh the cons, it will be easier for you to choose and outsource your IT needs to a quality provider such as Volumetree. With a world-class, highly efficient, and technically sound workforce, Volumetree can help you outsource with confidence.
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