Outsourcing is the strategic utilization of external IT resources to deal with the undertakings that are traditionally dealt with by staff or the internal resources. In other words, IT outsourcing is the utilization of external service providers to successfully deliver the IT-related business process, infrastructure solutions for business outcomes and application service. An example of outsourcing is let’s say if you order development of the mobile application or a website from an external company.
If you go for outsourcing, then many organizations sign a contract with the service provider and eventually become the business partners. Many a time, outsourcing is all about transferring the employees from one company to other outsourcing organizations.
Nowadays, outsourcing service has become very popular among small and medium-size business. With its rising popularity, most of the companies prefer the outsourcing services of their project. But, before you take the outsourcing services look for your needs properly, otherwise, you will be in trouble.
There are many reasons why do companies prefer to outsource business activities and some of them are:-
- To access the top-class capabilities
- Strengthen the company’s focus
- To increase, decrease or control the operational costs
- Increase the utilization of external resources
- Distribute the risk with the partner’s company
- Increase the efficiency of time-consuming activities or functions
All the above reasons may not be sufficient to execute a successful outsourcing program. But, before shaking hands with the outsourcing company in India, it is very important to understand if you are capable of meeting all the need and requirement of successful outsourcing.
Types of Outsourcing
There are various types of IT outsourcing characterized by where the outsource work happens. Below are the types of outsourcing and they are as follows:
- Onshore or Homeshore:- To allow the employee to work from home rather than to work in office, agency, factory or related physical workplace.
- Nearshore:- To move or transfer the business or service to some other company. Often times sharing a border(head office) with your own country.
- Move overseas:- It typically takes advantage of lower costs and more favourable economic climate.
Examples of Outsourcing services:- Hosting and Web Development, database management, Technical support, Application Development, Software Development, Application Support, Software Support, Infrastructure and Telecommunications
What are the benefits of Outsourcing Company in India
There have to be multiple reasons why companies go for outsourcing services. Below are some of the benefits that entrepreneurs and companies(small, large or medium) are choosing to outsource the parts of their business.
1. Experience and Skilled Technician
If you are trained, qualified, experienced and hands-on the project, then you can give assurance of your work. There is no doubt that the Microsoft Certified Systems Engineer (MCSE) certificate is important but the experience will play a vital role too.
2. Cost Control
If you are doing the outsourcing then it converts the fixed costs into variable costs and allows you to budget effectively. This means, you only pay for when you need the outsourcing service and then pay for the services only.
3. Focused on Core Business
Many businesses have limited resources, and the technician or manager has also limited time and attention. If you do outsourcing then it can help your business to stay focused on one core business only and it will not be affected by complex IT decisions.
4. Increase Competitiveness and Efficiency
There are companies in India that offer the in-house IT services and much obvious that they do a lot of experiment, research and implementation, all of which increase the costs and eventually passed on to their elite customers.
5. Reduce the Labor Cost
If you hire and train the IT staff then it can be expensive and you are not sure that they will match up to your expectations, so it’s always better that you outsource your work. Outsourcing lets you focus your resources when and where you need them most and in which area.
6. Level of Work
The small business cannot afford to match the in-house support services compared to larger companies. Outsourcing can be very helpful to small companies by giving them access to similar technology and can expertise that of large companies enjoy. The independent third party can manage the cost structure and economy of the scale and also give your company a competitive advantage in the right way.
7. Implement New Technology
A good quality outsourced IT service company will have all the resources to start the new projects in the right way. To handle the same project in the house may include days, week or even months to hire the right talent. Once you hire them then you have to give training and provide the support they need. For most of the usage, quality IT companies in India will bring the years of experience in the beginning and at later stages whenever required, thus saving money and time.
8. Security & Compliance
Has your company implemented the PCI security standards and work to maintain the standards? Do you have a DMZ installed or not? Is your firewall up to the date? Do you audit your servers and workstations or not? Let’s say, for example, businesses have many ways to prosper by taking many forms of payments like Debit Cards, Credit cards, Gift Certificates, Wire Transfers and e-check, but with these forms of transacting comes with the need for due diligence. By outsourcing number a good services company who is more familiar with Payment card industry (PCI) compliance standards, you can be assured that the company is minimizing the risks associated with sensitive competitive information, maintaining client data, credit card numbers and many other confidential pieces of information.
9. Certified Trainer Do Not Equal To Experienced
There are a few problems for leading IT service providing companies in India, which see related problems on numerous occasions. An in-house IT staff leads an isolated existence no matter how much they train, we would be all rather experienced in some of the other field, but the same is also true in IT.
10. Low risk
Each and every business investment carries a specific measure of risk. Financial Condition, Markets, Government rules and regulations, competition, and change of technologies very quickly. Outsourcing providers assume and manage all these risks for you with the right industry knowledge especially the compliance and security issues.