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Why Outsource IT Services? Everything You Need to Know

June 28, 2024

Table of Contents

    We live in the era of digital revolution, where not having a strong and efficient IT infrastructure can be dreadful for running a successful business. However, not all small businesses or budding startups have the right amount of resources for building and maintaining an in-house IT team initially.

    So do they just give up? Certainly not. They can opt out of outsourcing IT services.

    Let’s understand more about what is outsourcing IT services and when should a business consider outsourcing;

    What Is Outsourcing IT Services?

    Outsourcing IT services refers to hiring some skilled and experienced person to handle some or all of your business’s technology needs. In simple terms, it means outsourcing staff from IT service providers to keep things running in your business’s IT infrastructure effectively.

    When Should You Outsource IT Services?

    When Should You Outsource IT Services?

    Many IT experts have predicted that outsourcing IT services can increase a business’s operational efficiency by 45-65%. (Network Depot) However, there are still multiple businesses that struggle with operational inefficiencies and fail to identify the right time to outsource IT services. 

    Don’t worry we’ve got you covered, consider these points and easily identify when can a business outsource IT services;

    When A Business Is Scaling:

    The most suitable time to consider outsourcing IT services is when your business is scaling. Often, businesses focusing on expanding their operations and offerings overlook the fact that they may not have the necessary time and resources to fully support their business immediately. So whether it’s a technical team or a web development team, outsourcing becomes the most practical choice.

    When You Require Expertise:

    Whenever there is an upgrade or advancement in the existing technology outsourcing IT services can be considered. There might be a possibility that at the same particular time, your business is equipped with the required expertise.

    When You Want To Focus More On Core Business Processes:

    When the main focus of your business is to prioritize core business processes, outsourcing IT services is necessary. This will allow you to pay uninterrupted attention to other core business requirements, rather than dealing with a disorganized system.

    Having seen when should one outsource IT services let’s take a look at the various types of outsourcing services that are available in the IT domain;

    Types of IT Services That Can Be Outsourced

    Types of IT Services That Can Be Outsourced

    The various IT services that can be outsourced include software development, cloud services, cybersecurity, technical support, and infrastructural management.

    However, to keep things simple there are three broad categories that these services can be subdivided into based on geographical locations.

    • Nearshore

    First on the list is the IT outsourcing that is Nearshore. This in simple terms means delegating someone to perform the IT services to a a comparatively closer geographical location. This allows the host and the service provider to connect and collaborate with real-time updates, saving them time and resources.

    • On-shore

    The next type of service is Onshore. In this service, the process of outsourcing a professional extends geographically throughout the whole country. In other words, it means that the service provider and the hiring company belong to the same country geographically.

    The IT services work happens either remotely or on-site. Also, in case there is a shortage or unavailability of experienced service providers in the nearby geographical location, the business doesn’t have to bear any losses.

    • Off-shore

    Lastly, there is Off-shore IT services outsourcing. In this type of outsourcing the hiring of an IT expert happens from overseas i.e. a different country. This particular type of outsourcing is done to manage the business’s labor costs efficiently.

    Benefits of Outsourcing IT Services

    Here is a curated list of a few amazing advantages a business can have by Outsourcing IT services;

    Benefits of Outsourcing IT Services

    • Cost Savings:

    According to Deloitte’s research, 59% of companies opt for IT outsourcing as it enables significant cost reduction. This means that outsourcing IT services can help businesses save many resources and have cost savings.

    • Access to Specialized Skills and Expertise:

    By outsourcing IT services businesses can have access to professionals who excel in specialized skills to get the work done easily and efficiently.

    • Focus on Core Business Activities:

    Once any service is outsourced the concerned business owners can focus their efforts thoroughly on other business activities and functionalities.

    • Improved Security and Compliance:

    Lastly, outsourcing IT services can assist the business by enhancing its security and making sure all the compliances are adhered to properly.

    How to Choose the Right IT Service Provider?

    The next big question that pops up in their minds is how they can find out who is the right fit to provide IT services for them. Well, the doubts can be many and are fairly reasonable also, as outsourced IT services have to be deemed fit for the business; otherwise, things can go haywire. But don’t worry, we’ve got you covered. Consider these pointers before selecting any IT service provider to make the decision a lot easier for you;

    • Analyze Your Business Needs:

    First start by sincerely analyzing your business requirements and expectations. This assessment will help you determine what all your business needs and goals are. This also assists in steering the direction of your research in those prospective areas.

    • Researching Potential Service Providers:

    Then based on your business needs begin looking for potential service providers. They can be assessed on the parameters of experience, expertise, and other significant factors like Service Level Agreements(SLAs).

    • Considering Cultural Fit and Communication:

    As there are several outsource service providers available nearshore, on-shore, or off-shore consider having a communication text done to avoid having disagreements later on due to work culture differences.

    Outsourcing IT Services Vs. Managed Services

    For about some time now there has been a discourse going around whether or not outsourcing IT services is similar to what managed IT services are. The answer to this question is a big “No”. While from a surface-level perspective, they might look similar as both of them involve hiring an external person to execute an IT service, however, there is a very straight difference lying underneath. Starting from the scope and meaning of the two services.

    Outsourcing IT services is a service that usually incorporates specifically defined functions like technical support or software development. Meanwhile, managed IT services incorporate more proactive and comprehensive services required to manage and maintain a business for a longer period. Also, these services differ based on pricing and engagement models. Ultimately it depends on the business and its specific requirements whether to opt for outsourcing IT services or managed IT services. Partner with Cyntexa for Top Notch IT Outsourcing

    End Note

    As the world becomes increasingly reliant on technology, the importance of a strong IT infrastructure will only continue to grow. Also, the businesses that have recognized this are more likely to turn towards IT outsourcing to gain a competitive advantage. Thus, by leveraging the expertise of qualified IT service providers like Cyntexa, businesses can free up valuable resources, improve efficiency, and gain access to the latest technologies.

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