As more and more businesses today are looking to expand and scale their presence, the need for the right skilled candidate is crucial. Hiring the best talent through an IT outsourcing company is now the growing choice amongst these businesses. IT outsourcing not only boosts efficiency and productivity but also manages the rapidly evolving landscape of technology. However, choosing the right IT outsourcing company is a tough decision requiring extensive analysis and shortlisting.
Not every IT outsourcing company delivers quality service. There are only a few players in the IT market who are successful in outsourcing the best IT talent. They have helped numerous businesses to succeed in their endeavors. Before we move on, let us discuss what an IT outsourcing company is.
Definition of an It Outsourcing Company
IT Outsourcing companies are talent or workforce providers hired by other businesses to deliver the best technology and resources. An IT outsourcing company acts as a 3rd party entity working with multiple clients to develop technology solutions. Usually, these processes are on a contractual basis.
Types of Outsourcing
IT Outsourcing comprises different models and has different arrangements and services for delivery.
Onshore
The business that outsources its IT services to another individual or business within their home country is called onshore Outsourcing. For instance, a company that is based in California can outsource its services to another provider in the Philippines. This is the most convenient setting as there are no barriers in culture and time. However, this is the most expensive process of Outsourcing.
Nearshore
Under this process, a business outsources its IT services to a provider in a nearby country. A company in the United States, taking an example, may work with a provider in Latin America. This is considered the best of both worlds, as both have similar cultures, time zones, and prices are also lower.
Offshore
Outsourcing to a partner means working with a provider overseas. A company in the USA could outsource its IT services to China or India, for example. This process is usually the least expensive process, but there can be some complications, which include geographical or communication barriers.
Models of an IT outsourcing company
Project-based IT outsourcing company
In a project-based outsourcing model, the business outsources its specific project to a provider. Usually, this project doesn’t come under the scope of the contracting company’s primary business operations. It doesn’t mean this process is short-term, and the provider may finish a series of projects as per the business requirements.
Staff Augmentation
If you don’t have the required skills in-house to complete specific projects and tasks, then staff augmentation is the perfect solution for you. An IT staff augmentation company USA is a great option to fill in any gaps that exist in your in-house team. This is typically a long-term arrangement when compared with a project-based one. Staff augmentation is also a great choice if you require additional workforce to complete any task. The provider can perform maintenance and adjustments as part of the contract. This will allow your full-time employees to focus on other valuable tasks.
Development Center
An off-site development center is known as an outsourcing arrangement. A development center typically contains resources that a home office can’t utilize and employs people to undertake IT operations in the region.
Reasons to Outsource to an IT Company: Xentra Solutions
Gain Access to Top Talent
As we have already said earlier, Outsourcing means that you can partner and work with a provider from another country. This can be from the other side of the world. You may easily find the best specializations from around the world that you lack in-house to complete the project.
Controls Costs
Even if you choose an onshore IT outsourcing company, you can still save on costs. An in-house team needs to have full-time salaries, benefits, and also additional fees for equipment and resources. On the other hand, hiring an IT outsourcing company means that you no longer need to provide full-time salaries and benefits. This is because the provider will have its own resources and infrastructure that you do not need to fund. Also, the provider will have to invest in the training and development of this team.
Of course, if you outsource your IT work to a provider in a developing nation, then you will save even more.
Focus on Vital Business Functions
As a business owner, you may have some IT projects integral to your core business functions. Here, you require your in-house IT team dedicated to those tasks, but where will you leave the rest of the work, like general upkeep and maintenance? Outsourcing will allow your in-house team to engage in core business functions.
Helps in Growth and Other Short-term Needs
As your business grows, you may get stuck in a situation where you don’t have the staff and resources to complete the new tasks. Many companies opt to outsource their work during this transition phase. This gives them short-term solutions in order to decide how they can address their long-term requirements.
Alternatively, you may get irregular demands depending on the industry’s nature, the season, or other factors. During such busy phases, Outsourcing can help you tackle your workload.
Final Words
An IT outsourcing company can provide an immense advantage for your business when you lack the right talent or resources. With their experience and skill, they allow businesses to undertake core competencies while navigating the complex tech industry. As the technology industry is continuously evolving, it’s always the best option to outsource all your IT services in order to position your business competitively in the tech world.
IT outsourcing company Questions & Answers
1. How does Outsourcing work?
IT Outsourcing service is a business process where one company hires a third-party provider in order to perform work that would not have been done by the in-house team. This third-party provider can be located overseas or in the same country.
2. What is the purpose of Outsourcing?
The primary purpose of Outsourcing is to save costs, reduce additional expenses, and access skills that are not available in the in-house team.
3. What are the forms of Outsourcing?
Outsourcing can take up various forms like onshore, offshore, nearshore, and also onsite sourcing. The forms of Outsourcing depend on the location and nature of the provider.
4. Why Outsource IT Services?
Outsourcing IT is often utilized for reasons like reducing labor costs, which can be crucial in maintaining an in-house team. On average, companies can save 38% to 48% in labor costs. Outsourcing IT also enables access to specialized services and skills.
