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The term “Outsourcing” refers to the way in which companies entrust the processes of their business functions to external vendors. Any business process that can be done from an offshore location can be outsourced. This includes functions like data entry services, transaction processing, payroll and order and inventory management as well as a wide-range of other IT services or processes like website designing, coding, computer graphic assignments, content writing & editing, image manipulation services, OCR clean up services, transcription services, data conversion services etc. Apart from that there are a whole lot of call center services that are being outsourced as well.
We know that Information Technology (IT) is a major support function for any business. But all too often small to medium-sized businesses overlook IT as a critical business component, mainly because of the cost to develop and maintain an IT department. However, the growing trend of IT outsourcing can bridge the gap. In fact, analysts expect global Information Technology (IT) outsourcing to have a compound annual growth rate of around six percent through 2019. Some studies show as much as 60 percent of the IT function being outsourced, with spending on outsourcing accounting for 10.2 percent of average IT budgets.
Companies that invest in outsourced IT services achieve significant benefits that help them operate more efficiently and effectively without having to invest in a full-fledged IT department. Here are a few reasons why IT outsourcing are necessary and beneficial for businesses:
Outsourcing Helps Businesses Control their IT Costs:
Outsourcing helps businesses converts their fixed IT costs into variable costs and helps them save significant amount and focus on other segments of their businesses effectively. These savings vary from case to case, but normally range from 40 to 50% that indeed is something amazing for any kind of business or corporate sector. Analyses indicate that simply outsourcing email would produce notable savings. Outsourcing helps businesses reduce both their operational expenses as well as save the investment required to build the required setup or infrastructure. Like in case of outsourcing, you don’t need to spend for hiring and paying your employees to perform IT functions; all the functions of an internal IT team, from application development to hardware installations to end user support can be outsourced. Outsourcing also makes costs predictable, with contracts specifying fixed monthly charges. Outsourcing vendors can often charge less for network access and support than a business would pay the provider directly, as they purchase in bulk and can pass on savings.
Outsourcing Helps Businesses Reduce their Labor Costs:
As mentioned above, hiring and training an IT staff can be very expensive, and temporary employees don’t always live up to your expectations. Therefore, Outsourcing lets you focus your human resources where you need them most. Moreover, it helps you acquire highly qualified, experiences and well trained professionals at extremely economical rates.
Increased Focus on Core Business:
For most companies, IT is a support function, not a core competency. Building and supporting your own data center or the IT department isn’t likely to give you a competitive advantage. Because your business isn’t technology, it’s hard to recruit and retain an internal IT team with top-tier skills, so your team may not have the skills to create software which could give you an edge. Outsourcing IT functions lets your management focus on your core competencies and business development, rather than struggling with technology issues. In addition, outsourced IT services offer 24/7 support and guaranteed service level agreements that go beyond what your internal operations team could provide, letting you get more work done with fewer operational issues.
Access to Experts and the Latest Technology:
Because IT is the vendor’s core competency, they make sure their employees are trained and certified in the technologies they support. The IT services vendor has a team of experts in multiple IT technologies; you can draw on the vendor’s team for advice that helps you make the right technology decisions. You get access to the latest technology and support from a team that is expert in deploying it effectively. The IT provider will make sure systems are patched and upgraded on an appropriate schedule.
Reduced Risk and Increased Flexibility:
Technology is expensive, and making wrong decisions is costly. An IT services provider has a solid base of experience that assists with making the right technical decisions. If you decide to change your technology strategy, your IT provider will have tools and services to help you transition to your new platform. This is the reason that Outsourced IT services reduce the risk of data loss. More than 300 million pieces of malware are created each year, and companies face significant losses if a data breach occurs. IT outsourcing providers ensure that data centers have appropriate defenses, such as firewalls and security information and event monitoring software. Outsourcing vendors often maintain certification in the security standards needed to protect payment data or healthcare information, reducing the risks for businesses in those industries.
Moreover, relying on outsourced IT services also reduces the risk of disruption from downtime. Vendors build resilient facilities with redundant devices, minimizing the risk of downtime. Robust backup and recovery procedures reduce the risk of losing data if there is a device failure. This is the reason that working with an IT services provider also provides flexibility that enables companies to scale up or down quickly when their needs change. Temporary projects can be accommodated, and the charges stop when the project ends. If a company is growing rapidly and needs additional capacity, an IT services provider can rapidly bring additional servers and storage online.
Increased Employee Morale:
Outsourcing helps businesses increase the morale of their employees, as offloading IT work lets their employees focus on the jobs they are hired to do, while the more reliable systems provided by an IT outsourcing vendor can let them get more done. Because employees no longer have to perform tasks they are not an expert at and are more productive at their core tasks, they become more satisfied with their work and less likely to burn out and leave.
We are a full-fledged IT Services Provider organization equipped with all the necessary tools & expertise. You can fully rely on us for all your IT related services and assignments. We are fully equipped with all the required tools & resources to perform your IT Services as well as to start new projects right away, while handling the same project in-house might involve weeks or months to hire the right people, train them, and provide the support they need.