IT Outsourcing

Khushboo Kaushik is Content Manager at CareerBuilder India. Her expertise of writing can be uncovered in areas- Employer Branding, Recruitment Trends, Employee Engagement, Tech in HR. Also, a lover of poetry & art. Reach out to her at

As an entrepreneur, you probably have entertained your thought of outsourcing some part of your business. Be it accounting, information technology, marketing or human resources, today it is possible to run an organization without hiring even a single employee efficiently. The major benefit of cutting recruitment costs being consistent, but isn’t it there more to IT outsourcing than the bottom line? Indeed there is. In the following blog, we would discuss the reasons as to why IT outsourcing companies are chosen and what are the risks associated?

IT Outsourcing – The Reasons Unlocked

As per the Outsourcing Institute’s Outsourcing Survey, there are several reasons as to why organizations choose to IT outsourcing. Enlisted are some of the top ones:

Enhanced focus on primary activities. It is not practical to become a master of all trades. However, IT outsourcing allows HR to focus on their core competencies.

Enhanced access to the wide knowledge base. The return on investment with IT outsourcing is much greater. This would mean that instead of receiving the knowledge of just one individual, companies get an opportunity to take advantage of the collective experience of IT professionals. Most commonly, IT enterprises that outsource had a trained and certified IT, staff.

Internal resources are not ideal for the job. Companies may have someone in the premise to look after the IT requirement, but most likely that is not the actual job he or she is hired to do. Most time is consumed in taking care of these things, which leads to lesser productivity from the actual assigned task. Outsourcing IT companies at this juncture is a smart way to get the service done by trained professionals.

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Internal resources not available. On the contrary, there are situations when companies do not have the right individual to manage the It requirements and recruiting a new one stretches out the budget. In such a scenario too, outsourcing IT professionals is a feasible solution both for temporary and for the long-term period.

Devising the available funds. Management of capital the right way is crucial. With the help of IT outsourcing, which is a non-core function, businesses can spend their resources on core products, services, and operations.

Reduce Risk. The technology needed to run a business is expensive, which makes the role of IT outsourcing companies even more important. With the help of right knowledge and experience of IT professionals, companies can reduce the substantial cost of technology and ensures hassle-free business operations.

While the above reasons suffice the need for IT outsourcing, the risks enlisted underneath are vital before taking a decision to outsource.

IT Outsourcing-The Risks Unlocks

Insecurity & questions. Whenever you give another person responsible for a part of your business, regardless of whether a full-time new hire or an outside vendor, there is a risk that comes along. Questions such as, “Did I hire the perfect individual/company to carry out the job?” “Will they do what they are supposed to do? “By what method will they “fit” with existing employees or divisions? These are the questions that bother managers of private companies while giving over the responsibility of IT operations to another employee or vendor.

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Control might be lost. Critics contend that an outside vendor will never be as compelling as a full-time employee who is under the supervision and coordinated by different employees. Some businesses feel that their control over the employee is almost lost with the case of IT outsourcing.

You may feel ‘caged.’ If you needed to purchase an exclusive software, it seems like you cannot go anyplace as many IT outsourcing companies oblige businesses to sign a year bond, which limits the flexibility.

The vast majority of these risks can stay away if employers and hiring heads ask the correct questions while deciding to outsource their IT needs. IT outsourcing done mindfully, helps the business grow in all possible ways.

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