February 16, 2024
According to the 2017 UK IT Outsourcing research conducted by Whitelane Research and PA Consulting Group, two-thirds of the businesses who currently outsource IT continue to do so at the same rate, with 35% citing that they are planning to outsource more.
The study, which investigated more than 800 unique IT outsourcing contracts, notes that the majority of the organisations surveyed are satisfied with their outsourcing solutions. Overall the market is expected to grow, prompting more businesses to invest in IT outsourcing.
If you’re still in the process of considering if outsourcing software or web development is right for your business, now is the best time to explore its significant advantages. Here are the top five benefits that come to mind when working with an IT outsourcing service provider.
The availability of talent has a big impact on business. Office location is a factor when hiring for tech and digital skills. If your business is located in an area where other companies are also hiring for the same skills you’re looking for, then expect hiring to be difficult and time-consuming.
No industry is as heavily affected as tech with the problem of skills gap. This moves many businesses to outsource their IT needs such as software development, web or mobile development, or even systems maintenance and IT support.
An IT outsourcing service provider enables you to access skills and expertise that may simply be not available internally or through local hiring. For instance, you need a mobile app developer When you choose to outsource, you’re essentially maximizing the use of an external resource. No longer limited by local options, you’re now able to leverage world-class talent.
Time translates to money gained or spent in the business. Engaging the services of an IT outsourcing partner saves you a considerable amount of time in a lot of ways.
For instance, you need a web developer to build an online store using the eCommerce platform of your choice. The project needs to be completed in a short time. An offshore developer provider can save you time in sourcing for the tech talent you need - from recruitment to interviewing and technical testing.
Hybrid service providers like Cloud Employee gives you fast custom recruitment along with instant workspace setup of your offshore web developer, allowing you to start working immediately.
Outsourcing your IT development allows you to free up valuable internal resources, boosting the productivity of your in-house productivity.
With an offshore development team handling the technical aspect of your business, your internal staff can now focus on delivering your company’s unique selling points - whether this be in sales and marketing, business development, or customer service.
Improved staff productivity where your internal and offshore team are enabled to do what they do best means your business operates more efficiently. Nothing reflects this clearly than your company’s bottom line.
Reducing costs is still the main driver why businesses choose to outsource IT. High demand for tech skills and low labour supply make for a very competitive job market. With the worldwide tech skills shortage that seems to worsen every year, the cost of hiring IT staff, especially in the US, Europe, and Australia, is expected to remain consistently high.
Small businesses then struggle to compete with established tech firms for the local pool of developers. By giving your startup access to the same resources that big firms have, IT outsourcing levels the playing field. Arguably, it helps drive innovation by enabling scrappy entrepreneurs to disrupt an industry.
IT outsourcing not only enables businesses to remain competitive but also minimizes hiring risks. Many IT outsourcing service providers do not tie you to long-term contracts, enabling you to execute projects with more control.
You also have the flexibility to grow or scale down your team according to what your business needs. Your startup might not have enough funds to have a developer or test engineer indefinitely but hiring through an IT outsourcing service provider lets you access talent as you need them.
To sum up, working with an IT outsourcing provider gives businesses from startups to large firms undeniable advantages. From accessing talent, saving time, reducing costs, improving productivity, to increasing flexibility, IT outsourcing gives you an overall competitive edge.