Outsourcing can provide tremendous benefits for businesses, impacting many different areas of daily operations. While any number of functions can be successfully outsourced, significant benefits can be found in outsourcing IT functions.
1. Cost
With high demand for IT talent in the US, salaries and wages are soaring. Outsourcing provides companies with the ability to hire highly qualified talent at much lower prices and flexibility. While reducing labor costs is seen as the greatest reason to outsource, some of the additional savings are often overlooked. Health benefits, facilities, infrastructure, equipment costs and more would all be covered by your outsourcing partner, reducing costs across the board.
2. Time
It’s a candidate’s job market, and many companies have difficulty finding qualified IT talent or keeping them from jumping to competitors. According to a 2017 Indeed survey of HR managers and recruiters, 75% think the time-to-fill IT roles has increased in the past three years and 83% believe it has hurt their business either from lost revenue and/or slower product development. In most cases, outsourcing with a specialized partner allows you to fill roles, ramp up for a special project, and build a strong IT team in a much shorter timeframe.
Outsourcing can also significantly decrease the amount of time it takes to complete a project. Lower labor costs allow companies to increase the number of employees on a project, increasing productivity, and shortening the time it would have taken your in-house team to do it alone.
3. Location
India has long been associated with IT outsourcing, but many other countries around the world now offer high quality and technical talent with excellent value. When selecting an outsourcing partner you must consider: language barriers – will it be difficult to communicate with or understand your outsourced employees?; time zone differences – do your outsourced employees work the same hours as the rest of your company or will you use a follow the sun model?; laws and regulations – is your intellectual property safe and secure under local law?
4. Experience
An established outsourcing partner is the difference between a successful engagement and a horrible experience. When you interview potential partners be sure to ask detailed questions about their talent pool, company history and clients. Proven results are your best indicator of future success with an outsourcing partner. Do your research and find a partner with a good reputation and experience.
5. Stability
Building a strong corporate culture with high employee engagement is extremely important, especially when you are relying on your partner to monitor and maintain their teams. Companies with high employee turnover won’t be able to provide you with consistent high quality service. Find out what your partner’s employee retention rate is and how they keep their employees.
Dedicated teams are best practice for outsourcing partners. When employees move from client to client, they are not committed to the success of your project, and won’t be dedicated to your team. Be sure your partner is providing you with the best service from dedicated teams.
6. Scalability
No company is too small to benefit from outsourcing! Make sure you are working with a partner that allows you the flexibility you need to get things done, within your budget and under your direction. A good partner allows you to hire as many or as few employees as you need for a task or a project, for whatever time period you need them for. Make sure there is transparency and you aren’t getting yourself locked into a contract that doesn’t match your requirements.
7. Strategy
One of the hidden benefits of outsourcing is that it reassigns standard processes to outsourced employees and frees your experienced local team to focus on strategy and innovation. Let your lead IT folks pay attention to the most important tasks, and manage your outsourced employees to support and help you complete the big picture.
Finding the right outsourcing partner is the key to a successful engagement. The experience should be a true partnership, with your outsourcing company listening to and addressing all of your needs and concerns. If done effectively, outsourcing should be an extension of your company, with all the benefits of your own captive facility, allowing you to fully integrate your outsourced staff into your existing corporate structure.
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