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IT Outsourcing- Is It Always Cost or Shortage of Technical Skills?

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IT is an integral part of any online business and its importance has increased exponentially in today’s highly competitive world. Many companies have been reluctant in outsourcing their IT operations in past and had chosen to recruit in-house staff to fulfill their requirements.

However, it seemed impossible to them to keep pace with constantly changing technology and expanding their workforce. In such a scenario, they gradually embraced IT outsourcing India instead of expanding their IT departments. This has helped them achieve superior economies of scale. 

You must be wondering if it is only the cost that they were able to save. Don’t you think it has something to do with balancing demand and supply? Isn’t it about accessing the technology experts as and when required? Isn’t it about keeping pace with constantly changing technology when it is throwing up challenge after challenge?

Yes, it’s a combination of all. IT outsourcing is done not only to achieve cost advantage but it offers a range of benefits. Here I’m listing the major ones:

1.    Access to the skill set that is not available in-house/ Fulfills the shortage of technically trained people

2.    Quick turnaround

3.    On time and within budget web/ web apps development

4.    Reduced risk of wrong decision

Shortage of Technical Staff: Hiring a full time employee for your IT needs might not be in your budget. In such a scenario, IT outsourcing comes as a feasible alternative where hired developers work full time on your project from a remote location and at low prices.

If you tie up with an IT offshore firm, you can get access to the technically trained professionals specializing in the areas and working for the time period you want. You do not have any obligation to work with them once your project is over. IT firms having offshore development centers offer you complete flexibility to hire any number of technology experts ranging from one to a full-fledged team. They even help you establish your own facility overseas.

Reduced Risk of Wrong Decision: Keeping up with technology is necessary but at the same time it is extremely expensive and time consuming. One wrong decision in technology selection can crush your image and leave you financially drained.

The professional IT service providers keep a track of latest changes and adhere to best industry practices. Their knowledge and experience reduces the risk of incurring cost on implementing wrong IT decision.

Quick Turnaround: This is one of the biggest benefits that you can reap by outsourcing your IT operations. They can quicken the development process and help you launch your products or services before your competitors do. Even if you need a web application within a few days, believe me you won’t be disappointed. This is because you can hire developers offshore depending upon the scope of your project.

Within Budget Development: When you decide to outsource, you save money that you can spend on improving your customer service, expanding your business operations, enhancing your marketing campaign. By hiring developers offshore, you also eliminate other costs such as training expenses, bonus, retirement plans, health insurance, employment taxes and other benefits. Using this fund, you can improve your office administration or can offer added facilities to your existing employees.

IT outsourcing is going to stay and you will also, sooner or later, need to decide on what basis you should outsource. But one thing is clear, it is not only the cost that should influence your decision.

Article Summary: In this article, we saw the importance of IT outsourcing India and what benefits it offers to businesses. The author intends to bring out the point that cost is not the only determining factor but the other things including access to technology professionals, quick turnaround and reduced risk of wrong decision also play an important role.

Author Summary: Kuntal Mehta (KJ) is the managing partner of Seashore Partners, a web development, e-commerce solution and SEO company headquartered in New Jersey, United States. With the help of this article, he aims to bring forth the main benefits of IT outsourcing other than cost. Your decision of outsourcing your IT function should not solely depend upon the low labor cost. Zero-in the reason for outsourcing to meet your long and short term goals.


SeaShore Partners Article's Source:

  • Posted On August 8, 2012
  • Published articles 10

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