Why IT Outsourcing Companies are Beneficial for Businesses?
Today, Information Technology (IT) is one of the key functions for any business. But, small and medium-sized businesses often overlook IT as an expensive expenditure, primarily because of the budget involved to develop and sustain an IT unit within the company.
While small and medium-sized businesses often opt out from approaching outsourcing IT functions, bigger organizations have already forayed into the domain and leveraging its ample benefits.
Industry insiders and reports confirm that the trend of deploying IT outsourcing companies to fulfill major needs of bigger corporates have shot up considerably in the recent past in India, which is further expected to grow by 6% in 2019. The reports also suggest that nearly 60% small and medium-sized businesses are already seeking the help of IT functions through outsourcing.
However, the rising trend of choosing IT outsourcing companies can fill the gap utilizing IT function through outsourcing. Moreover, experts believe the average budget for IT outsourcing is 10.2%.
Companies, which invest in IT outsourcing services, reap significant benefits. IT outsourcing helps them operate more effectively without investing in a full-fledged IT department.
The following paragraphs would highlight why do businesses need IT outsourcing companies:
As savings are crucial, the major advantage of IT outsourcing is the reduced expenditure. The estimated saving is around 40%. You will see both capital and operating expenses are reducing. You don’t need dedicated hardware and software. Hiring cost for IT employees is automatically reduced. When there is a reduced payroll, there is a reduced expenditure for employee benefits and training. You are already prepared for predictable outsourcing expenses as the contracts specify the fixed monthly cost.
Access to Latest Technology
As vendor’s core competency is IT, it’s their utmost responsibility to thoroughly provide you professional services. They make sure they have trained technologists who can propel their IT services. You can approach the designated team or individual for the assistance in urgencies. The IT provider always ensures that the systems are fixed and upgraded whenever required. They make the customers get the best services.
Improved Employee Morale
When your employees have upgraded and advanced outsourcing benefits, they are less affected with the loss of productivity due to technical failures. Employees are not responsible for the tasks which they are not expert at and only responsible for what they were hired for. Ultimately, it increases employees’ morale. It helps them become more productive at their core tasks.
Reduced Organizational Risks
Making wrong decisions can sometimes turn out to be disastrous on the part of the company ; one erroneous decision on the technical front can often cost a fortune. On the other hand, an information technology company has a strong experience base which takes the right technical decisions. If a client needs to change the current technology strategy, the IT outsourcing company has the right services and tools available to support in the transition.
For example, Malware attack is a common security threat, and companies often have to face significant data losses. IT outsourcing companies have appropriate firewalls and data protections that can provide assistance when such a crisis crops up, thereby reduce the risk of downtime. In case, if there is any device failure, they can recover the data easily through robust recovery technology.
For most businesses, IT is a support wing, not a primary competency. In such case, it would not give you a competitive advantage when you build and support your own data center. If your business isn’t technology, it’s not worthy to recruit an internal IT team with top-level skills. If you choose one of the IT outsourcing companies, they let you focus on the business development and core competencies rather struggling with technology. Usually, technical outsourcing is meant for 24/7 support. They actually offer services more than an internal unit can offer. Ultimately, they offer you fewer operational problems and you are able to get more work done.
Firstly, you must monitor your IT requirements and then approach a professional vendor. It’s crucial to assess the capability of the IT outsourcing vendors which you are trying to approach. Remember to conduct a thorough market research and analyze the companies that are operating in the market. It is advisable that you approach an IT outsourcing firm only after a complete research.