IT outsourcing uses external service suppliers to successfully distribute IT-enabled business development, application service and organization solutions for business results.
Forms of IT Outsourcing
There are numerous forms of IT outsourcing, defined by where the outsourced work happens.
· Typically to take advantage of lower costs and/or a more favorable economic climate they moved their business/services.
· Another is nearshoring, transmitting business/services to another country close by, often times sharing a border with your own country.
· In addition, Homeshoring/Onshoring: permitting employees to work from home rather than an office, factory, or related physical workplace.
Examples of Regularly Outsourced IT Services
· application/software development;
· web development/hosting;
· application support or management;
· technical support/help desk;
Benefits of Outsourcing
Reasons that companies/entrepreneurs are choosing to outsource parts of their business.
· Proficiency: overseas merchant/business uses special equipment and/or technical expertise, in doing their given task. Because of it, it makes them better than employees within the outsourcing organization.
· Reduced costs: a big appeal to outsourcing work overseas is reduced costs for labor, operations, and even equipment
· Staffing flexibility: according to James Bucki,”Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when you’re done.
Disadvantages of Outsourcing
Some potential disadvantages to outsourcing.
· Language/cultural barriers: these can affect both employees and customers, especially when clear explanations of the problems and solutions are required.
· Different time zones: this can add as a barrier to communication and coordination with the hiring company.
· Slower turnarounds: the language barriers coupled with time differences can sometimes lead to longer project/resolution times.
· There is a possible loss of quality, unless you invest time in a rigorous screening process.