Pros of Outsourcing IT Services: The Measurables

IT Outsourcing

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Outsourcing isn’t a new concept anymore. From information technology to manufacturing, a lot of things are being outsourced. And why not? Outsourcing is an effective and most popular business strategy.

This business strategy has been into existence for a long time and still practiced by entrepreneurs worldwide. The only reason is a long list of benefits that it offers.

Outsourcing IT services eliminates the need to recruit new staff for your project. Within a few days, you can set up an offshore development center and kick start your project. Not only it is hassle-free but it also allows you to reap the benefits of currency arbitrage.

Most organizations consider outsourcing IT services as a means to expand their business into other countries and fresh markets. However, on a much detailed level, outsourcing has a lot more advantages than what is objectively asserted to be its plus points.

Let’s Discuss the Top Benefits of Outsourcing:

  • Cost Reduction
  • Access to a Large Talent Pool
  • Focus on Core Business
  • Round the Clock Services
  • Risk Management

Now, without wasting any time, let’s take a look at these points one by one!

1. Reduce Project Cost:

As mentioned above, most companies may employ currency arbitrage to their benefit. Based on Deloitte Global Outsourcing Survey of 2016:

  • 59% of companies outsource to reduce the cost.
  • 57% do it to focus on core business.
  • 47% to solve capacity issues.
  • 31% to improve service quality.
  • 28% to take help from talented dedicated offshore developers.

Recommended Read: Outsourcing Facts & Statistics You Need To Know!

This cost reduction can be in the form of the following:

  • Overhead Salary
  • Employee Benefits and Compensation
  • Infrastructure (Hardware and Software)

To leverage the benefit of cost reduction, a large chunk of companies in West and Europe outsource to India or other Asian countries. It’s simply because the average hourly rate of Indian developers or Asian developers range from $20 – $40, whereas the US developers charge between $100 – $200/hr.

Now, it’s crystal clear that the cost to hire mobile app developers or web developers in India will be one-fifth of the cost required to hire developers in the USA. However, cheap is not always good. Therefore, while hiring remote developers, keep a balance between the cost and quality services.,

Make sure to choose a reliable offshore development company that can help you strike the perfect balance between the two.

2. Access to a Large Talent Pool:

Different people, diverse opinions and a pool of expertise. This is the beauty of outsourcing.

When you decide to outsource IT services, you may come across different remote teams. Each team including offshore developers who come from different regions and cultures.

Talking about India, this country is well known for its diversity. According to a report from The Week Magazine, India will house more than 5 million offshore developers. In fact, most of these software developers are well equipped with the required KSAs to make your project successful.

It means along with diversity, there will be plenty of talent you to choose from.

3. You can Focus on What you do Best:

IT Outsourcing

By making the decision of outsourcing IT services, you are allowing your in-house team to focus on other important tasks. In fact, you can also direct your focus on generating new business for your company. Also, you can work towards the expansion and progress of your organization as a whole.

Whereas if you are working with an in-house team, there’s a chance that most of the time will be spent in keeping track of the latest developments in the industry. On top of that, you will have to constantly make efforts towards updating the skill sets of your team, leading to the extra expense.

Just remember, communication is the key to success. Therefore, make sure that your dedicated offshore team is well understood about your idea, business, and objectives. In case, there is a gap in communication, it will lead to a waste of time explaining your requirements again and again.

4. Round the Clock Services:

By utilizing the time-zone advantage, you can reduce the time to market. Just do the following:

  • Select a country with a time overlap of 3-4 hours. This way you can easily communicate with your dedicated offshore developers in regular working hours.
  • Create sync between your in-house & dedicated offshore team.

While your in-house team will be working during your regular hours, your offshore development team will work when you are asleep. This will ensure that the development process is going 24/7. Hence, outsourcing IT services can actually reduce development time.

5. Risk Mitigation:

Outsourcing Software development to an offshore development center involves a number of risks related to:

  • Schedule
  • Budget
  • Technicalities
  • Management
  • External Risk

Recommended Read: Top 5 Risks In Software Development

Outsourcing IT services is a process of sharing the responsibility for product development. However, this by default includes all the risks involved in the development process. In short, while offshore development, you are also mitigating the risks involved in the process.

When you are planning to hire offshore developers, it is critical that you distinguish all the upcoming and major risks. Some common problems that you might face are time-difference, unfamiliarity with the culture, and misconceptions about work culture. So, in order to overcome all these problems that further might lead to risks in your development phase you should thoroughly be clear about all these factors with your prospect offshore development centers, conduct meetings with your hired developers, and define a clear communication channel.  

Offshore Development Companies Knows it All!

While collaborating with an outsourcing partner, you must ensure that they have years of experience working with different industry verticals.

There’s a long list of issues that may arrive if you are working with your in-house team. However, your offshore developers can resolve those issues in a jiffy because of years of experience on their back. On top of that, your offshore team may be able to find a better solution to every possible issue that may arise over a period of time.

Just make sure that the company has delivered a plethora of similar projects in the past. Look out for their previous client’s reviews to ensure how reliable are their services.

Occasional Follow-Up!

This is every agency’s favorite. While outsourcing IT services, you are delegating responsibility to another company that understands the depth of your project and will work harder towards helping you achieve your goals.

You only have to evaluate their services on a regular basis and give your suggestions whenever required. It doesn’t demand a lot of time and focus. Be in touch with your team and communicate regularly to ensure everything is working fine.

India is one of the most favorite outsourcing destinations for countries across the globe. With an amazing IT support structure, India is where you ought to outsource IT services.

With an amalgamation of brainpower, infrastructure, and creative ideas, you can consider Your Team in India as your ideal offshore development center for your IT requirements. Just drop us a line of requirements at [email protected] and our experts will get back to you.

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