Outsourcing the functions to the expert is really getting popular in corporate sector. Whether it is Human Resource, Engineering, Production or Information Technology, the organizational functions are being outsourced. There are different factors which do play a role for organizations to decide for outsourcing. The major attractions are usually the expertise expected from service providers and the cost effectiveness.
IT functions have been one of the top most outsourced function areas. There are different advantages of out sourcing IT.
Top five have been listed below;
- Efficient Services
- Cost Effectiveness
- More Competencies
- Better Utilization of Services
- Expert Guidance
Let’s get into brief description of these advantages;
1. Efficient Services
Information technology has become an integral part of the business today. Whether it is the online communication, usage of internet based technologies or use of computer based systems and networks for routine business activities the importance of information technology for business can not be denied. Therefore, maintenance of IT infrastructure for continuous and quality support is of immense importance for performing regular business activities. The service suppliers having the expertise and vested interests do ensure the efficient services.
2. Cost Effectiveness
All functions of IT are not performed as part of normal course of business. Maintaining staff for such functions with regular salaries is not recommended, therefore, outsourcing such functions keeps the costs controlled. On the other hand small and medium sized companies can not afford staffing to perform all IT functions therefore, they prefer to outsource. Furthermore the outsourced IT functions result into anticipated expenses which facilitates managing expenses with-in budget.
3. More Competencies
Rate of technological advancement is very high. It is not easy for in-house IT department to develop its staff with all technologies. Whereas, outsourced service providers keep themselves well aware and make sure to train the staff on new technologies. Therefore, it becomes easy and economical to have more trained personnel through outsourcing.
4. Better Utilization of Resources
Outsourcing creates a room for IT staff to divert their attention towards some other productive work. They can focus on strategic areas like facilitating the management for planning and decision making through providing dynamic and online analysis, can also work on facilitating users and employees through adopting advanced technologies. Hence outsourcing helps in better utilization of IT staff.
5. Expert Guidance
Having IT suppliers on board, the IT department does have an edge of expert guidance. They not only get the updates from supplier but can also discuss the requirements. The supplier being part of the IT corporate world and having IT experts in their team, are the best option for seeking guidance.
Though outsourcing does also attract some risks like security of sensitive business information, dependency on outsiders, chances of exploitation in case of termination of business etc. but the benefits of outsourcing does not let its wave stopped. Despite of the risks involved the companies around the world are outsourcing their IT functions depending on the size of business, complexity of function, advancement in technology and competency of the IT staff.