Outsourcing your IT development could be a hard decision. Very often during discussions with CxO’s, directors and business owners we conclude that despite the advantages they still don’t dare to do it. They are afraid of losing control. And this is something I fully understand. It’s like your kids growing up and then at once they decide to leave your house. But one thing is certain, eventually it will happen. So, why should you decide to outsource your IT? Below you will find 10 most common reasons.
1. Cost reduction
Unfortunately, cost reduction is still being considered as the greatest advantage of outsourcing. People expect cost reductions of up to 60%. Outsourcing is a good way to cut (unnecessary) costs, however, it hardly ever reaches this level.
2. Access to resources
Especially small and medium sized enterprises are increasingly facing difficulties in recruiting and retaining IT specialists. To be the most cometitive, you need to have access to the best people on the market. IT companies assemble most efficient IT specialists with vast experience, working with the latest technologies. They are able to offer you flexible and scalable resource solutions.
3. Access to the latest knowledge
How many of your employees do you consider well-educated in a specific IT domain? Are you sure their knowledge is up to date? Are they able to oversee all the available IT technologies? IT outsourcing will give you access to a wide range of up to date IT knowledge. Obviously, training your own and new employees will cost you a fortune. Needless to say it also takes too long to groom new IT employees.
Many companies tend to rely on contractors, self employed people, who deliver their IT knowledge to the company. But what happens when this “expert” is not available? Cooperation with a provider you trust makes that the continuity of resources is guaranteed. You do no longer have to rely on a single person.
5. Focus on your core business
IT is becoming more and more important for most companies. But this doesn’t necessarily mean that everybody likes it. We notice that many CxO’s, directors and business owners would like to focus on their core business instead of worrying about their IT matters. IT outsourcing can result in more attention for your business and your clients.
6. Time saving
“Time” is probably more valuable than ever before. As a hard-working businessman you have no time to waste. Surely, outsourcing involves the initial time investment, but later you will save time because you do not have to manage all your remote working “colleagues”.
7. You get what you really need
Outsourcing forces you to think twice. When you are developing an application in-house the development team often faces many change requests to satisfy everybody’s needs. Before you outsource the development you will have to specify your needs in detail. A good IT provider will help you to specify your needs and by adding their experience you can really focus on the real core of the solution. By doing this, also your costs might be reduced, I described this before in 3 ways to cut your software development cost by 50%.
…is something most companies are looking for. Having your own IT staff is not easy. For most companies it’s too expensive to be prepared for the highest possible demand. But it’s fact of life that one week you need 4 people and the other week 6. By extending your development team with outsourced resources you will be more flexible.
9. Reliability and stability
Due to better career prospects IT specialists within a dedicated IT company are developing faster. Because of the easy access to the knowledge of their colleagues, they just know more. In general, this should result in a more reliable and stable service delivery.
Service providers are able to fully focus on the project. They are not involved in internal affairs at the outsourcer’s side. This results in a higher productivity of the IT specialists.
A combination of the above factors motivates our clients to consider outsourcing. On the other hand they are facing concerns as well. Feel free to comment on this post by leaving your comment below or discuss with us on Twitter: @GOYELLO.
Entrepreneur, co-founder & Managing Director of Goyello and Webmerce. Sociologist and electrotechnical engineer, a great combination that stimulates him to look for working solutions. Passionate about converting great ideas into new solutions. He is married and a proud father of 3 great sons. Participating in (and training for) triathlons to stay fit.