Advantages and Disadvantages of Outsourcing

By  //  July 13, 2020

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Company managers have to find any possible ways to reduce costs, including staff reduction or engaging third-party IT services providers. In this case, it may be more beneficial to cooperate with the company that provides software development services.

Company managers have to find any possible ways to reduce costs, including staff reduction or engaging third-party IT services providers. In this case, it may be more beneficial to cooperate with the company that provides software development services.

The key advantage of offshoring is that IT companies like Beetroot have experts in various fields, which makes it possible to solve client issues on time and provide technical support. 

Pros and Cons of IT Offshoring

You have probably established your own business and think about how to delegate some work to contractors. Then it should be interesting for you to find out about the benefits and possible risks of such a decision.

Benefits:
1. You save money. Now you shouldn’t hire IT professionals because all their job is performed by an outsourcer. Such companies hire talented specialists, who develop software at affordable prices.

2. Processes optimization. If you delegate IT projects to contractors, you can concentrate on your own tasks and invest more time, effort, and resources to the core business.

3. Access to the latest technologies. Do you need high-class personnel to set up a modern service? Or you want to implement the latest developments and stand out of the competition? Now, this is not a big deal.

4. Guaranteed results. The contractor is fully responsible for the level of expertise of its personnel and takes actions to provide all specialized services following the current needs and situation.

Disadvantages:

1. Adaptation. Usually some problems may occur because of the poor communication between the contractor and the client.

2. Lack of  managerial flexibility. This can be possible if you delegate too much work to one provider.

3. Third parties’ access to confidential information. It’s very difficult to control an unauthorized use of confidential info, even if the company has its own full-time system administrator

But the undeniable benefits of delegating tasks are still superior to the possible flaws. And if you take a closer look, it becomes obvious that all the possible risks are usually connected with an unwell-arranged process of communication between a client and a contractor. So, to protect yourself, it is enough to check several points:

• clearly plan your business strategy;

• check the profitability of IT outstaffing;

• avoid delegating too much to one contractor;

• cooperate only with trustworthy performers.

When selecting contractors to work with, you need to check their performance in the past, case studies and clients’ feedback. This info can usually be found on the company’s website or outside review platforms.

How to Choose a Good Outsourcing Partner

When selecting contractors to work with, you need to check their performance in the past, case studies and clients’ feedback. This info can usually be found on the company’s website or outside review platforms. 

Ask if employees have professional certificates and successful projects in their portfolio. Keep in mind that you are handing over the info about your company to outsiders.

So, the outsourcing partner should be ready to provide all the necessary guarantees of data integrity and safety. Data loss is one of the reasons why a contract with an outsourcing firm may be terminated.

Conclusion

Outsourcers with extensive experience in IT strive to master new technologies and, as a rule, can offer various solutions depending on the requirements.

IT outsourcing gives a lot of advantages to companies with the limited resources, which doesn’t allow them to track all processes. But even large corporations prefer to transfer IT tasks to contractors to pay more attention to the core business issues.

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