The IT revolution in the 1990s caused the adoption and spread-out of outsourcing IT to offshore call centers. Eventually, all scales of businesses adapted to the growing trend of the IT revolution; with that, the demand for more people and office space to cope up with the job also increased.
In joining this revolution, however, a few considerations have to be made before deciding to outsource IT functions. First, businesses should measure the scale and scope of their IT operations and evaluate the need for outsourcing their IT functions, data centre management and back-office functions.
The Chief Technology Officer (CTO) will draw up the IT plan framework, then negotiate with service providers and draw up the service level agreements for each task. It is more advisable also for some of the key IT personnel to visit the site of the third-party service provider before making a decision.
Most of the IT functions outsourced include software development, coding, software management, and Web applications and web services management. Also, almost all big companies outsource their help desk support services and customer contact projects to IT outsourcing providers.
Along with outsourcing almost any type of business function (e.g., telemarketing services, virtual assistant services, etc.), outsourcing IT functions has become a growing trend. This is due to how cost-efficiency is the primary benefit when acquiring outsourcing services.
With IT outsourcing, the following are the benefits towards the business:
1. Overseas Benefit – Businesses can take advantage of the lower wages that they have to pay to their IT service provider, which is located in another country. In terms of communications, businesses can also save cost by using free services (e.g., Skype and e-mail), which enable them to communicate with their business contact anywhere, anytime, at no added cost.
2. New Projects – This applies well for small businesses that have to get started on an IT project. They can send requests for proposals to multiple IT service providers. Then using the bidding process, they can choose from a number of providers, and find the most suitable proposal that matches their needs and budget.
3. Structuring Contracts – With IT service providers, you can freely structure your contracts according to what your business needs to outsource. This benefit is not about the cost that you will be saving, but it is stating the specific project needed.
4. Capital – Businesses that acquire the services of IT providers free up on capital cost, by changing IT services (payroll, expense of IT staff/professionals) from a fixed cost to a variable cost. By having a changeable expenditure on IT every month, the business can focus on investing in activities and projects that could yield a deeper impact to the development of the business. Some of these activities would include corporate planning and training for staff.
IT is one of the most outsourced functions in back-office services. Because of this demand, many IT service providers—and outsourcing companies in general—have sprouted to meet the demand and offer quality outsourcing needs to all scales of businesses.
In joining this revolution, however, a few considerations have to be made before deciding to outsource IT functions. First, businesses should measure the scale and scope of their IT operations and evaluate the need for outsourcing their IT functions, data centre management and back-office functions.
The Chief Technology Officer (CTO) will draw up the IT plan framework, then negotiate with service providers and draw up the service level agreements for each task. It is more advisable also for some of the key IT personnel to visit the site of the third-party service provider before making a decision.
Most of the IT functions outsourced include software development, coding, software management, and Web applications and web services management. Also, almost all big companies outsource their help desk support services and customer contact projects to IT outsourcing providers.
Along with outsourcing almost any type of business function (e.g., telemarketing services, virtual assistant services, etc.), outsourcing IT functions has become a growing trend. This is due to how cost-efficiency is the primary benefit when acquiring outsourcing services.
With IT outsourcing, the following are the benefits towards the business:
1. Overseas Benefit – Businesses can take advantage of the lower wages that they have to pay to their IT service provider, which is located in another country. In terms of communications, businesses can also save cost by using free services (e.g., Skype and e-mail), which enable them to communicate with their business contact anywhere, anytime, at no added cost.
2. New Projects – This applies well for small businesses that have to get started on an IT project. They can send requests for proposals to multiple IT service providers. Then using the bidding process, they can choose from a number of providers, and find the most suitable proposal that matches their needs and budget.
3. Structuring Contracts – With IT service providers, you can freely structure your contracts according to what your business needs to outsource. This benefit is not about the cost that you will be saving, but it is stating the specific project needed.
4. Capital – Businesses that acquire the services of IT providers free up on capital cost, by changing IT services (payroll, expense of IT staff/professionals) from a fixed cost to a variable cost. By having a changeable expenditure on IT every month, the business can focus on investing in activities and projects that could yield a deeper impact to the development of the business. Some of these activities would include corporate planning and training for staff.
IT is one of the most outsourced functions in back-office services. Because of this demand, many IT service providers—and outsourcing companies in general—have sprouted to meet the demand and offer quality outsourcing needs to all scales of businesses.
About the Author
Miche is a self-employed blogger and copywriter from Philippines who has a love on writing and always happy to share his passion on blogging.