Businesses using the right IT outsourcing strategy can reduce expenses overall, experience fewer interrupted workflows, and benefit from talented IT experts managing their information technologies.
While every approach to outsourcing varies, certain IT outsourcing models have proven more effective than others. With so many outsourcing models and types of outsourcing services available, it can be challenging for businesses to know where to start.
To help you navigate the evolving terrain surrounding IT outsourcing, our article covers:
- What Is IT outsourcing and the types of IT outsourcing
- The reasons why businesses hire IT outsourcing companies
- How to get started with managing IT outsourcing services
What Is IT Outsourcing?
IT outsourcing strategy is a plan that lets companies hire third-party providers to manage specific information technology functions from data storage, cloud migration, automating business processes, and more.
As a short-term strategy, IT outsourcing is optimal for businesses looking to mitigate downtime by letting experienced IT personnel monitor and quickly troubleshoot IT issues.
Long-term IT outsourcing strategies are popular for:
- Providing IT cost savings (such as by reducing technology, hiring, administrative costs, and overheads)
- Automating certain business functions which can improve business efficiency
- Leveraging economies of scale, avoiding hidden costs, and receiving better ROI
How Will Outsourcing Your IT Impact the Business?
Find out if IT outsourcing is the right option for you – and how your competitors are tackling the same issues you are.
Identifying the Right IT Outsourcing Strategies
The primary objective of IT outsourcing strategies is to maximize return on investment from IT expenditure. As such, there are three types of outsourcing you can opt for:
- Project outsourcing
- Team outsourcing
- Outstaffing
Project Outsourcing
IT project outsourcing allows organizations to execute entire projects using the resources of another company.
Generally, an in-house IT team coordinates with a project manager to ensure project quality, performance, and execution. Project-based outsourcing is often considered by organizations that need a medium to complex level of IT services.
.tg {border-collapse:collapse;border-spacing:0;margin:0px auto;} .tg td{border-color:black;border-style:solid;border-width:1px;font-family:Arial, sans-serif;font-size:14px; overflow:hidden;padding:10px 5px;word-break:normal;} .tg th{border-color:black;border-style:solid;border-width:1px;font-family:Arial, sans-serif;font-size:14px; font-weight:normal;overflow:hidden;padding:10px 5px;word-break:normal;} .tg .tg-zv4m{border-color:#c3c3c3;text-align:left;vertical-align:top; margin-bottom:20px;} .tg{ margin-bottom:20px; }Pros and Cons of Project Outsourcing | |
|---|---|
| PROS | CONS |
|
|
2. Dedicated Team Outsourcing
Dedicated team outsourcing involves hiring a team for a specific project and having all efforts put towards executing that project.
Dedicated team outsourcing involves less back-to-back collaboration and allows businesses to benefit from greater technical and product oversight. Early-stage startups are frequent clients of IT outsourcing.
Pros and Cons of Dedicated Team Outsourcing | |
|---|---|
| PROS | CONS |
|
|
3. Outstaff Outsourcing
Outstaffing is great for short-term projects where only a couple of additional IT professionals are required to fulfill the scope of work.
Overall, it is more cost-effective than dedicated-team outsourcing; and provides greater service flexibility than project-based outsourcing.
Pros and Cons of Outstaffing | |
|---|---|
| PROS | CONS |
|
|
Benefits of Employing the Right IT Outsourcing Strategy
Outsourcing lets businesses adapt to new demands without losing focus on core strengths. Additionally, IT outsourcing is a great way to:
- Stay within IT Budget – Reduce capital expenditure and make IT spending predictable.
- Streamline Compliance – Simplify risk management and maintain compliance.
- Outmaneuver the Competition – Improve business efficiency and cybersecurity.
- Reduce Internal IT Resources – Outsource strategic projects or delegate IT tasks to free up internal resources and meet other urgent priorities.
IT Outsourcing Strategies: What to Look For
The list of MSPs and IT outsourcing companies available on the market is extensive. With so many choices to explore, it can be overwhelming knowing what to look for. To simplify and maximize your IT outsourcing efforts, check the following:
Industry/Niche Specialization
For an outsourcing partner to support your business strategies, it must understand:
- The industry and business realities
- The corporate atmosphere
- The needed regulatory frameworks for maintaining compliance
The more familiar your IT partner is with your industry, the more likely it is that they’ll be able to meet your expectations.
Data Security and Compliance
Data security and compliance standards have drastically risen over the past decade. Failure to implement these standards can result in hefty compliance fines (totaling more than $1.3 billion in the U.S. alone).
To protect your business, make sure your partner:
- Meets (or exceeds) industry standards
- Follows best practices
- Has technical resources onboard (like CISSPs)
Service-Level Agreements That Support Your Business Objectives
Outsourcing contracts should include measurable deliverables. Make sure the service-level agreement you sign aligns with and supports your business goals.
A few example KPIs are:
- Ticket response times
- Guaranteed uptime levels
- Software development timeframes
Get Started with Managing IT Outsourcing
While there are many advantages of outsourcing, there’s also much to consider. Ensuring that your IT partners understand your industry and business processes while offering custom-service packages is a good place to start. To see if IT outsourcing is right for you, consider weighing the potential risks and benefits.
At Netsurit, we prioritize business process outsourcing by automating routine tasks, streamlining productivity gains, and establishing cost savings. We’ll help you safeguard your business from cyber threats, improve uptime, and ensure compliance.
Find out how we support the dreams of the doers, helping you grow your business while reducing costs and making IT the springboard to innovation for your business. Speak to us to learn more.
