IT Outsourcing is a multi­billion dollar industry and it has been growing rapidly in the last 10 years or so. Outsourcing has become a highly popular option for many IT companies worldwide and there are a number of reasons why they do so. The most common reason for outsourcing is that it is a cost effective way of getting things done, which can contribute to increase in profits for the company. Outsourcing also saves precious time for the company which can be utilized in a more productive way, which helps in growth and expansion of their core business. In this article we will discuss some easy steps to successful IT outsourcing, which companies can follow to get the desired results. Read more

Outsourcing is a term which refers to allocation of particular business-related proce­dures to a specialized provider of external services. It is challenging for a company to handle every single procedure of business inter­nally. An external provider would be a signif­icant help conducting the business activ­ities, as well as maintaining the assets of the company. The only question is, how to define when the company needs IT outsourcing? Read more

Companies can choose to meet their IT require­ments by outsourcing these needs to nearshore or offshore locations. Their decision is usually based on several factors, including proximity to the business location, cost compar­isons and language or cultural consid­er­a­tions. For a deep compar­ative analysis of offshore vs. nearshore IT-outsourcing, it is vital to first under­stand the concepts of the terms nearshore and offshore outsourcing.
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In today’s business world outsourcing have become a popular concept that enhances the perfor­mance of organi­za­tions by unbur­dening their resourses, reducing costs and at the same time achieving better results faster. Outsourcing has impacted all indus­tries and organi­za­tions, small or large. IT industry is one of the indus­tries benefiting from outsourcing due to the nature of IT jobs. Outsourcing IT services have gained a lot of attention of organi­za­tions, and for a good reason; however, unless the process of outsourcing is approached in the right way, undesirable outcomes will result. Outsourcing is only effective when the right path is taken, from selecting a firm to offer services (this is the corner­stone of outsourcing) to the execution of tasks, which highly depends on the company that has been chosen to provide services. This article looks at the key aspects of IT outsourcing and the effort it takes to get the desired results.

Defining your scope and schedule of the project

This is the first and most crucial step, laying out the objec­tives, schedule, and expec­ta­tions. This is a guide to the entire outsourcing process; it gives direction to the outsourcing process. The very first thing to do in this step is clearly to define the objec­tives, highlighting what outcome is targeted; this could include increasing the security of a given system, building a new software or installing a better network system. The objec­tives should be detailed and not vaguely defined. The complete and accurate infor­mation should be generated as a part from the organi­zation needing it for planning purposes. It will be required by the service provider for their planning, cost evalu­ation and effective tasks execution.

Evalu­ating the Options

There is a great number of options when it comes to outsourcing IT services; this is because the flexi­bility of IT services makes it possible for some services to be outsourced from any part of the world with ease and high level of efficiency. When evalu­ating the best alter­native available, it is imper­ative that price is not used as the primary deter­minant of the most suitable candidate. The following factors should be taken into account in evalu­ating the best service provider.

  •  IT Specific Category. IT is a broad field that entails many different catego­riza­tions ranging from networking, software development, graphic design, databases and data science, and many more. This calls for an organi­zation to narrow down to the specific service providers that offer the required services. A firm that offers all the services may not be as effective as the firms that specialize in providing specific services, as they are more specialized in that area. Hence, where the project is sensitive, it is ideal to choose a firm that specializes in the specific area.
  • Experience and Compe­tence. Experi­enced service provider is the best bet to getting excellent results. Check the service provider’s experience to find out if they are capable of providing the requested services and deliv­ering the expected service quality.
  • Reputation. The firm or company image is one of the key aspects of IT outsourcing; it helps in evalu­ating the options to identify the right service provider. A services provider with a good reputation and good customer feedback is an ideal option.
  • Commu­ni­cation and Working Conve­nience. Commu­ni­cation is one of the major success ingre­dients in any task; it is ideal to choose a service provider who is acces­sible and easy to work with.

Getting into contract

The above factors should be considered during evalu­ation of the service providers, and when a suitable candidate is identified, it is crucial to check if the service provider is licensed and is compliant with the state laws. After identi­fying the right service provider, it is essential to draw a written contract for legal compliance and also to help solve discrep­ancies, if the things go wrong during the project.