The IT industry has dramatically expanded as a thriving and crucial sector, comprising the bulk of youth and like-minded individuals who want to advance in their careers. IT has contributed to the Indian economy’s growing GDP and increased jobs.
IT outsourcing is a recent trend wherein companies or industries look out for external IT services leveraging low-cost labour and quality product and service innovation.
IT outsourcing is generally defined as delegating the company’s projects to a third party or an external party for the project’s completion.
This is done keeping in mind the factors mentioned above, where the company doesn’t have to spend extra on employee training and managing the desk, but can just hire time-based service, paying only for the service rendered.
There are certain advantages and disadvantages that you need to consider while opting for IT outsourcing.
It is inevitable for giant firms to outsource their IT owing to gigantic projects and workloads. Thus, they must have a thorough understanding of the pros and cons of outsourcing IT. So, let us begin with first things first, without any further ado!
The advantages of outsourcing IT
Savings on expenses
Savings are the biggest turn-on! It is inevitable for businesses to save because they have to incur charges on training and tools. They can directly hire a third party for the period with less capital.
Optimal cognition
Outsourcing is also done to increase the efficiency of the in-house developers. How? While a business transfers its part of a workload to a third party, the in-house developers benefit from having one less workload and extra time to focus on their core work, thus increasing the efficiency and focus on the activities.
The capacity to concentrate on key abilities
While the business transfers its work to a third party, it gets easier for it to make its employees concentrate on the key functionalities of the business. In this way, the business can carry out its core activities by leveraging the key abilities of concentrated employees.
Easy access to specialized resources
When you broaden your horizons, you have an excessively high number of opportunities. Outsourcing has no boundaries in terms of geography, demography, skills and talents, or resources. A business could have a dearth of required resources in its region, and that is where outsourcing comes to the rescue. Several countries provide good expertise with a low cost of labour. The IT outsourcing is up to the mark and cost-efficient.
Security advantages
Another benefit of outsourcing that you cannot ignore is the level of security it provides. This is an era of cyber threats, and businesses that are solely dependent on digital technology are prone to them on a higher scale. But outsourcing companies, apart from legal services, also offer high-end security and IT infrastructure. They also provide improved efficiency, no hidden costs, and low-cost labour pools.
Marketability
Outsourcing provides vast market opportunities for its clients. As the offshore developers work remotely, it is obvious that they would market their product to their country or region as well. And that is when there is a chance of penetrative marketability for the business that has outsourced.
The disadvantages of IT outsourcing
The disadvantages of IT outsourcing can be severe if you haven’t chosen your third-party firm wisely.
You mustn’t choose any random offshore outsourcing company as it will lead to only disasters in terms of lower productivity, delays in delivery and security. So, you must keep these things in mind before outsourcing.
There are chances you could lose control and later be at risk with intellectual property and data security. There can be unexpected costs when the development process goes wrong and the developer doesn’t meet your requirements. So, it is rightly said to take your decisions wisely!
If you enter the market searching for one, you will get a number of IT consulting companies. But what will bring you to a highly specialized and experienced company is your ability to understand the market.
Prakash Software Solutions is an IT consulting company, and it prides itself on providing finesse in the field.
If you need any assistance in finding out what service you should opt for in terms of outsourcing, Prakash will provide you with the right guidance as well as experienced developers for all your needs!
