MENU
Flipping Heck! Learning To Be Productive One Day At A Time

The Pros And Cons Of IT Outsourcing Explained

Illustration of finger pointing at tech

The Pros And Cons Of IT Outsourcing Explained

A lot of modern companies have taken advantage of outsourcing IT services for a long time. Small startups and huge corporations apply this cooperation model to grow their businesses and bring them to the whole new level. However, outsourcing is not a one-size-fits-all solution. If you are in two minds whether you should outsource your software development and maintenance to a third-party vendor or not, this post is worth reading. The best time-tested way to make an informed decision is to debate all the advantages and disadvantages of the specific issue, isn’t it? This article will walk you through the main pros and cons of outsourcing IT services so you can determine if this solution meets all your business needs.

Outsourced IT Services in a Nutshell

Okay, before we dive into the IT outsourcing pros and cons, let us have a few words about what the practice of outsourcing is in the first place.

IT outsourcing is the contraction of information technology outsourcing. To put it simply, outsourcing stands for delegating the maintenance of the company’s IT infrastructure to a specialized third-party vendor. The important thing is that the contractor can be entrusted with both handling the entire IT system (full outsourcing) and managing its individual components or services (partial outsourcing).

Basically, companies can choose what IT work they want to outsource, although ordering the full package is not a rare thing. The most commonly outsourced IT services include:

  • App and web development and/or design;
  • 24/7 monitoring of IT infrastructure and/or individual services;
  • Providing data security services;
  • Company’s software development, configuration, and updating;
  • Support and implementation of data backup services;
  • IT consulting, etc.

Essential IT Outsourcing Advantages and Disadvantages

Suppose you have set up your own business. Now you can either hire an in-house team of IT specialists or delegate the work of your IT department to an external service provider at a lower cost. Sure thing, the latter sounds like a very attractive option. Let’s check if it is so by weighing the main benefits and drawbacks of IT outsourcing.

The Advantages of Outsourcing IT Services

More attention to core competencies

A company gets a chance to focus on core business activities while IT tasks are handled by a qualified service provider. It doesn’t matter whether you opt to outsource separate day to day tasks or the whole infrastructure of your company’s IT, either way, it means that you don’t need to spend a significant amount of resources on finding and hiring new employees or training longtime staff members.

Costs reduction

An opportunity to save on expenses is one of the main advantages of IT outsourcing. According to the latest statistics, almost 60% of companies give their preference for outsourcing because it helps them to cut costs. With IT outsourcing, there’s no need to maintain an in-house IT department. All the work is performed by an outsourcer whose labor rates are low due to the location in the cheaper region. Also, it is a cost-effective solution for many companies because it excludes all hidden costs including paying sick-leaves, vacations, renting office spaces, and purchasing expensive hardware and software.

Access to more advanced skills and resources

When the IT-related functions of your business are carried by a few in-house experts, you only rely on the level of skills, knowledge, and resources these people have. What are the odds that they are familiar with all the latest technologies and trends? However, when you choose to outsource IT tasks to a qualified provider, the resources and knowledge your company can benefit from are unlimited.

High-quality result guarantee

A managed service provider (MSP) is solely responsible for the competence of their employees so you can be sure that all services will be provided in accordance with the agreement.

The Disadvantages of Outsourcing IT Services

The adaptation period is hard to predict

As a rule, the establishment of convenient interaction between a contractor and a client may take some time at first. Due to this, there might be some issues with scheduling a phone call or resolving an emergency problem within your IT infrastructure. As soon as the communication channel works effectively, this con is off the table.

Management flexibility reduction

The loss of control is quite a predictable outcome if you concentrate too many processes in the hands of a contractor. There are cases when information technology outsourcing companies have to take up responsibilities and make decisions as fast as it is possible.

Security

You have to be careful and picky when it comes to choosing an outsourced IT provider because the wrong choice may cost you the security of your company’s data. A trustworthy vendor always checks SLAs for data security and compliance with ITIL.

In conclusion, we’d like to point out that the objective advantages of IT outsourcing outweigh the likely disadvantages. And if you take a closer look, it becomes obvious that all possible risks are somehow connected either with the carelessness of a customer or the bad faith of a service vendor. That being said, in order to protect yourself from unscrupulous vendors, follow these simple rules:

  • Map out a clear business strategy;
  • Estimate the profitability of IT outsourcing for your business;
  • Don’t entrust a vendor with too many processes;
  • Read testimonials and cooperate only with reliable vendors.

Hope we have given you a satisfactory answer to the question, “What are the pros and cons of outsourcing IT services?”.

blank
About The Author
Yevhen Piotrovskyi is the Co-Founder & CTO at Yojji, a software development company. Also, he is a full-stack JavaScript developer who enjoys sharing his thoughts about technologies through blogging. You can also follow Yevhen on LinkedIn.
  • Follow Yevhen Piotrovskyi on:
  • blank
  • blank
Please Note: This post may contain affiliate links. By clicking on these links you will not be charged any extra for purchasing goods and services from our preferred partners however flippingheck.com may receive financial compensation which contributes to the running of the site. For more information please read our Advertising & Affiliate Disclosure Policy

Subscribe to our mailing list

Join Hundreds of readers who have access to exclusive downloads and content

Comments are closed here.