Just fifty years ago, IT was almost non-existent in most organizations. Now it is a core aspect of doing business, from accounting to inventory control, and it would be hard to imagine a world without it.
The transition from a world without computers to one reliant on them wasn’t always smooth – but that shouldn’t paralyze us now for the future. By contracting out your IT services, you can take advantage of new methodologies that are becoming more mainstream and developing with the times.
Outsourcing your IT will give you access to new technologies and an expanded skillset for your organization, setting you up for success as we approach the next decade.
Thanks to advancing internet speeds and increased coverage, outsourcing your IT services is more viable than ever before.
And thanks to the growing trend of using software as a service (SaaS) over traditional software, it is now possible to find talent all over the world.
Thanks to advances in technology, there are now more options available for outsourcing your IT services. With software as a service (SaaS) getting more popular than traditional software, you can now hire remote IT professionals.
What Exactly Does Outsourcing IT Involve?
Outsourcing IT services is simply the outsourcing of IT work to external vendors. Traditionally, this work would have been taken care of in-house, perhaps with the help of adding software development companies for one-off projects.
As businesses increasingly rely on software as a service (SaaS) platforms, the shift towards outsourcing IT services grows in both popularity and economic feasibility.
Instead of being responsible for these essential services when you outsource them, the IT vendor will be responsible. This is a smart business move because the vendors are a more reliable resource and they offer a lot of features that you may not need.
The two types of services that are often outsourced are inward-facing (payroll, accounting, inventory management) and outward-facing (shipment tracking, complaints resolution).
In many cases, these services work together to provide a better user experience. For example, inventory management and shipment tracking should go hand in hand.
The Different Types of Outsourcing
Outsourcing IT services can come in many different forms, and the type of service you need will depend on your preference. There are four main types of IT outsourcing that we’ll break down here;
Offshoring is a business strategy that businesses use to lower their technology costs and save money.
Companies usually outsource their IT services to vendors in a distant location, such as family abroad. Offshoring is most often used because it offers organizations the opportunity to take advantage of more favorable economic conditions, alternative timezones, and access to a new talent pool.
In some ways, nearshoring is very similar to offshoring. It’s when a company outsources IT to a remote vendor. However, this time the vendor will be much closer to home.
By choosing a vendor that’s closer, the company can take advantage of some of the same benefits as offshoring (more affordable labor, smoother communication) without too much cultural divide.
Onshoring is a type of outsourcing that involves using a vendor or employee located within the same country as the company doing the outsourcing. The onshore vendor is normally found in the company’s home country.
Onshore vendors have both economic and geographical benefits over traditional outsourcing practices because they are typically located in close proximity – or even in the same building – so there’s no need for extensive travel.
The internet is everywhere, and more and more people are seeking businesses that are somehow related to it. That’s why outsourcing IT services as a possibility has become so popular.