Benefits of IT Outsourcing: 7 Advantages and Disadvantages of Outsourcing You Need to Know

By: | April 10, 2022 | Tags: , , , , , |

Do you know the benefits of IT outsourcing?

The advent of the digital revolution has opened new doors of opportunities for the business industry. One such example is the outsourcing model, in which a team is hired from another location to work in collaboration.

Certain factors make this collaboration successful. In this regard, the role of communication is of utmost importance.

By reading this post, you will find out the benefits of IT outsourcing as well as outsourcing problems.

When it comes to the benefits of IT outsourcing, several questions may arise to mind.

Here are some crisp answers to a few of the most asked queries about the benefits of IT outsourcing.

What Are the Benefits of IT Outsourcing?

benefits of IT outsourcing

Due to the multi-functional benefits of IT outsourcing, this business model is gaining momentum across the world. Here are some of the reasons for its popularity.

Gives a Boost to Efficiency

When you partner with IT staffing services, you are likely to provide a catalyst to the in-house IT team. They don’t have to worry about updating, maintaining, and monitoring their IT infrastructure. Hence, they can direct their focus on improving their services and products and gain the capacity to increase their competitiveness. 

According to Mike Jackowski of ASPER BROTHERS, a company that provides software outsourcing, “We often find that once a company uses the outsourcing model once, it expands the scope of the partnership each year. Noticing the benefits of this form of cooperation, companies decide to implement outsourcing in new areas.”

Improved Data Compliance with Better Cyber Security

The outsourced companies keep themselves updated regarding data compliance and cybersecurity certifications. After outsourcing IT services, business leaders need not be fearful of security breaches or leakage of their sensitive information. It will help business leaders to focus on other areas of improvement.

Moreover, outsourcing IT services can provide additional layers of network security, ensuring robust protection against cyber threats and enhancing data integrity.

Reduced Labor Cost

One cannot neglect the expenses associated with having an in-house IT team. From providing office equipment to training them, the process is never-ending. You can cut down all these additional costs by outsourcing the IT services.

Keeping a Check on the Downtime Issue

Downtime is one of the critical issues in business nowadays. The solution lies in the constant monitoring of both hardware and software systems. The dedicated team of outsourced managed IT services makes monitoring systems manageable. It will then improve the performance graph of your business.

What Aspects of Communication Are Worth Checking before Starting Cooperation?

Communication is the key to maintaining a balance between the company and the Outsourced IT provider. It ensures that the two parties resolve issues efficiently by working collaboratively. 

 Watch out for the following signs!

Delay in Response to Your Queries

If your outsourced IT provider is taking too long to reply, this might not be good for your company in the longer run. A timely response is a key to the increased performance of your company. Also, check if their operation staff responds according to your requirements or not.

Hence, you need to check if that was just a one-size-fits-all type of response.

Let’s examine more benefits of IT outsourcing.

Language Barrier

If your outsourced company is based offshore, the language barrier is a stumbling block in communication. Without talking to the team, you cannot convey the targets you desire to achieve. Also, you will not be able to gauge whether they can understand and listen patiently to your business problems or not.

No Mechanism for Dispute Management

Trust and cooperation between the IT sourcing provider and business come with negotiation. For effective management of work, escalation mechanism are a must-have. If there is a void in resolving disputes, you must rectify this at the earliest possible time.

How Often Should the Communication between Teams Take Place?

The absence of effective communication with an outsourced team can be a recipe for disaster. A lack of understanding of the idea accompanied by minor misunderstandings will most likely put your project in dire straits.

Planning Sprints

You can set days with your outsourced team when you will have the call for the sprint summary. In this way, you will be able to see the progress of your work and adjust the next sprints accordingly. It is advisable not to extend the time by more than two weeks.

benefits of IT outsourcing

Schedule Video Conferences

Because of geographical constraints, most sprint reviews cannot take place by sitting at one table. Instead of a phone call, scheduling video conferencing once a month is a better option for communicating with the outsourced team.

Dealing with the Difference in Time Zones

When your outsourced team is based offshore, both sides may use overlapping working hours for communication. Hence, both parties can easily talk while they’re still at work. You can assign a few hours when both parties can easily discuss their work-related problems. Also, understanding what is a softphone can help improve communication by enabling voice calls over the internet from any location. 

What Tools Can Be Helpful When Communicating with the Outsourcing Team?

Communication seems challenging when the outsourced team is based offshore. But with the help of using various online resources, the problem is solved in a jiff.

Here are some of the tools that can prove to be helpful while communicating with the outsourced IT team.

Email

Email is an effective communication tool used when dealing with an outsourced team. Other real-time applications like calls or SMS won’t be compatible enough because of the time zone difference. The plus point is that you can retain a record of every exchange. Hence, the electronic paper trail can come in handy when you need to recall any details of your outsourced project.

Related Reading: Why These 7+ Email List Providers Are the Best in 2022

Skype

Skype offers both VOIP and chat options. Apart from audio/video calling, you can also drop a text to your outsourced team. But, this application comes with an associated cost for dealing with near or offshore solutions.

Related Reading: 5 Advantages of Having a Non Voip Number [in 2022]

Slack

Slack is considered the default tool for team communication. It entails the feature of team messaging while adding collaboration tools. You can even share images, files, and links through this application with your outsourced team. It also allows you to make VOIP calls and send direct messages even if you are working in multiple workspaces.

Nextcloud

Nextcloud is a cloud solution that offers to share your data and links with your outsourced IT team. It also comes with the option of installable apps so that you may include any other collaboration tool. Not only that, being an open-source tool, you could build apps and features according to the requirement of your communication.

How Does Communication Influence the Efficiency and Success of a Project?

Positive Feedback from the Team

With effective communication, the queries and concerns of team members are noted down. It builds the confidence of the outsourced team and makes them realize that their opinions are being heard. Thus, the cumulative effect of this encourages innovation.

Promises better understanding

When working with an outsourced team, there is the element of cultural diversity. It may be hard to work together in the absence of effective communication. Hence, effective communication influences the success of the project by turning cultural diversity into an asset.

Benefits of IT Outsourcing: FAQ

What are 5 benefits of outsourcing?

Reduced labor cost, a boost in efficiency, improved data compliance, better security, and keeping a check on downtime.

Summary: Benefits of IT Outsourcing

By reading this guide, you discovered four benefits of IT outsourcing and three outsourcing issues that could prove to be challenges.

Outsourcing has changed the entire dimension of work. Without effective communication, you may end up landing yourself in trouble. Because in outsourcing collaboration, if the desired goals are not shared effectively,  the trajectory of success will not be achieved.

This post was contributed and made possible by the support of our readers.

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