IT Outsourcing

When you have an idea of a software product to be developed but you do not have an IT team at the moment at your company, it doesn’t mean that you need to give your recruiters a task to hire developers, designers and engineers for you. The solution is much easier. You can turn to outsourcing which is an extremely popular practice these days, especially in the IT sphere. Or you can have another situation - when you already have your own team to develop software, but you need additional resources or the help of a dedicated development team. You may have a long-time contract with such specialist or a short-term one just like with a temporarily augment team.

By the way, IT outsourcing can be a good way-out for you not only for such a situation when you need to develop an application or any other product. If you want to enhance your legacy software or need to support it, no problem. It’s also possible.

What is IT outsourcing

Before you make a decision whether you need to hire specialists from another company to work for you, let us sort everything out to help you clearly understand what we are speaking about.
To put it as simply as possible, such practice as outsourcing presupposes getting services from specialists that are not employed at your company or organization. Though IT specialists are not the only ones who are hired in such a way, at the moment, IT is one of the predominant sectors that are outsourced. Among all the sectors that turn to outsourcing, including HR, sales, marketing and others, the share of IT is about 30%.

The total budget that the companies all over the world allocate for paying for outsourced IT services is constantly growing.

What are the most highly-demanded IT services that are outsourced nowadays?

  • Mobile app development
  • Web app development and maintenance
  • Software support
  • Web hosting
  • Legacy software enhancement
  • Administration of databases
  • IT security

Outsourcing or in-house software development?

It’s obvious that each company has to answer this question on its own. Of course, if you have had a strong IT department since the moment when your company was founded, there are few reasons (if any at all) to turn to outsourcing.

But if you are just starting your way on the market, or you are planning to expand your activities (and need to apply some software that you didn’t need earlier), or you have an IT team but are not satisfied with its current state, outsourcing can be a good solution.

In-house development will fully suit you if:

  • You want to have full control over your IT specialists;
  • You are ready to motivate people, be responsible for taxes, people’s vacations — and have all this headache about geeks management;
  • Be ready to pay “for the bench” — if you don’t have tasks for a regular employee you have to pay monthly salary anyway;
  • You want to create an entire corporate culture and believe that IT specialists should also be involved in it;
  • You are ready for such situations when for some tasks your employees may need more time than you expect;
  • You are not against investing in the development of the skills of your employees as well as in the development of the infrastructure and technologies.

Outsourced services will be a better option for you if:

  • You want to have more space for flexibility;
  • You want to get your tasks done as soon as possible;
  • You do not want to deal with hiring and administrative issues;
  • You understand that sometimes it can be rather complicated to execute full control of the team;
  • You want to scale your team on the fly and don’t want to lose time for looking for an appropriate employee for this or that position as well as to deal with the recruiting and hiring process, signing contracts with new people and so on;
  • Time difference is not a problem for you (this point is not always applicable).

Though there is no one universal recommendation, you should always take into account many factors when you need to choose between outsourcing and in-house software development. 
But always bear in mind the fact that according to the recently conducted studies, outsourcing may help you to reduce overhead costs up to 60%.

Get a free expert consultation about the IT Outsourcing services.

Types of outsourcing

Remote outsourcing is a rather wide notion that refers to the practice of hiring a third-party company for doing some pieces of work for you remotely. It’s the most common situation when the specialists who are providing outsourced services are working from the office of their direct employee, not of a customer.

Offshore outsourcing is a term used to describe the model of working with a company that is located in another country. This practice is a very common one today. It allows businesses to cooperate with the most skilled and experienced experts in the world and at the same time to save money. Quite often, it is much more feasible to hire a team from another corner of the world than from your neighborhood. However, in this very case, you should be ready that you may face time difference and some cultural peculiarities in communication.

Models of working with third-party services providers

Though many people still believe that outsourcing means just finding a services provider that will perform some tasks for you without your participation and involvement (which can be a huge minus for many of us), it is not always so. Today there are some other options for getting benefits from working with external specialists and staying involved in your project.

Outstaffing is a model that is placed somewhere between hiring in-house specialists and outsourcing. Though outstaffed specialists are officially employed by another organization, they are fully managed by you. These specialists can even work in your office (or at least they are always available via phone calls or video conferences). Moreover, when we are speaking about outstaffing, very often, it may be just one professional who will perform some tasks for your needs.

The dedicated team model refers to a situation when you enter into an agreement with a services provider that creates a team of specialists fully based on your requirements. Though this team works remotely, you build your communication and the way of working with them just like they are your in-house developers (but you are free of many administrative tasks related to the process of employing specialists). Such a team is stable and is fully concentrated on the goals of your project.

The augment team model is actively gaining popularity these days. Augmentation presupposes that you already have your in-house development team but due to some reasons (a new project, for example) you need to enrich it with external talents. Though these programmers, as a rule, work remotely, you always have an opportunity to interact with them. These guys can bring to your project new skills and new vision. As a rule, they work on one particular project for you and the majority of contracts are short-term. But you can easily hire them for the next one when the first project is completed. Augmentation offers amazing flexibility, which is extremely important for businesses today.

Advantages and disadvantages of IT outsourcing 

What benefits will you get if you decide to turn to outsourcing?

  1. A stronger focus on your core activities. It is especially valuable for small and medium businesses. When you order IT services provided by third-party specialists, you do not need to care about dealing with IT-related issues within the company. As a result, the efficiency and productivity of your business will be growing.
  2. Easier access to skilled professionals. You do not need to waste your time looking for, testing and hiring candidates. You can work either with the companies that have already selected the best specialists or the companies that can do it instead of you.
  3. Reduced expenses. You do not need to invest in the infrastructure, software licenses, technologies and many other things that are obligatory when you have your own in-house IT team.
  4. More flexibility in staffing. You can easily change the teams you are working with in accordance with the needs of your projects.

Though we feel our responsibility to share some disadvantages and risks of outsourcing with you, we want to highlight that you may avoid the majority of them if you find a reliable company to provide you with outsourced services.

These risks and disadvantages are the following ones:

  1. Lack of productive communication. We put this issue on the first position as it is a crucial one. Sometimes this problem really exists, especially when a customer does not have deep knowledge in IT. If a customer can’t explain the requirements in the right way, can’t plan the tasks and set the goals correctly, the expectations may not coincide with the results.
  2. Lack of confidentiality and risks to lose some sensitive data. While working with third parties, you need to share your data with them to get the work done. However, with a responsible services provider, you won’t face any problems related to this issue.
  3. Lack of control. We know that some businesses feel that they lose control over the services that are performed by external experts. 
  4. Poor quality. Yes, this problem exists in this sphere. But we strongly recommend you to cooperate only with experienced and trustworthy firms and you won’t have any issues.
  5. Hidden costs. Please, be extremely attentive when you conclude a contract with an outsourced team to avoid unpleasant consequences.
  6. Lack of stability. As you do not manage the company that provides outsourced services to you, you are not responsible for its performance. So, the company may step out of business, which can be absolutely unexpected for you.

As we have already mentioned, such practice as outsourcing really has its risk. However, if you are diligent enough, you won’t be confronted by them.

How do we collaborate with our clients?

We fully understand that it may be rather difficult to entrust your projects to a third party. That’s why we always try to stay as transparent and open as possible. We allow you to be involved in all the processes if you really need it.

We want you to feel confident about the work that we are doing. In order to efficiently organize the workflow and not to lose even a single detail, we use such software as Jira/Confluence for project management, GItHub or AWS for source code repositories and Agile/Scrum methodology for software development. So, you can always stay up-to-date with all the changes.
If you are interested in outsourced IT services, we are the right company to help you.

We are ready to cope with tasks of any complexity and with projects of any scale. You just need to share with us your requirements and we will provide you with a team or specialists you are looking for.

Rely on us and enjoy your work being done for you.

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