Some businesses grow that fast that they can’t keep everything under control. They often have deadlines for delivering the next version or feature of their digital product. Sometimes, along with the development of the main business product, there appears to be additional product development or the development of a new in-house tool to improve the performance of the team. In this situation, the in-house IT resources might be not enough. Companies require additional specialists. But they are unsure how long this rapidly growing phase will take, so it’s not wise to hire specialists for long-term contracts. Additionally, the hiring process usually takes way too long and companies don’t have time for it. When you are in this situation, IT outsourcing is your way to go. 

What is IT outsourcing?

IT outsourcing is the practice of using an external service provider to deliver some or all of the IT functions required by a business including managing infrastructure, directing strategy, and running the service desk.

IT outsourcing providers can take full responsibility for all IT maintenance and support, this is called a fully managed service, or they can provide additional support for an internal IT team, this is sometimes referred to as co-sourced IT support and is usually an approach taken by larger organizations.

A company may use one provider for all their IT requirements, or multiple service providers to deliver different elements.

The difference between outsourcing, offshoring, nearshoring, and onshoring we describe in our article “Nearshoring. What is it? And for who?”.

What do we mean by growing businesses?

A growing business is usually the one that increasing sales and strengthening its position in the market. However, growth isn’t a strictly defined concept.

A growing business is one that is expanding in one or more ways. There is no single metric used to measure growth. It depends on which growth goal a company pursues. Several data points can be highlighted to show a company is growing. These include:

  • Revenue

  • Sales

  • Company value

  • Profits

  • Number of employees

  • Number of customers

Companies can grow in some of these metrics but not in others. This means defining growth can be difficult. For some ambitious start-ups, this could mean doing everything they can to increase the total number of customers, even if they make a huge loss in the early stages of growth. However, other businesses as scale-ups will benefit from slowly increasing revenue and sales to ensure money is coming in to help cover costs. Those looking to grow their business should look at their business goals to establish the growth metrics they find important.

9 ways how IT outsourcing can help growing businesses

  1. It enables your company to concentrate on core business.

  2. It controls capital costs.

  3. It gives scaling-up and scaling-down opportunities.

  4. It helps reduce labor and hiring costs.

  5. It gives the opportunity to improve the quality.

  6. It offers to get specialists in the areas you don’t have experience with.

  7. It makes it possible to start new projects quickly. 

  8. It helps to reduce risk.

  9. It accommodates to maintain operational control.

Focus on your core business. Outsourcing IT functions allows businesses to hand over the reins to experts who are professionals in this area of business. This gives companies and entrepreneurs a chance to focus on what they do best. Outsourcing IT tasks will free your energies and enable you to focus on building your brand, invest in research and development of the business, and move on to providing higher value-added services.

Control capital costs. Cost-cutting may not be the only reason to outsource, but it's certainly a significant factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business. Outsourcing can also make your firm more attractive to investors since you're able to pump more capital directly into revenue-producing activities.

Adjust to changing environments. IT Outsourcing allows growing companies to bring in additional resources when they're necessary. The outsourcing company can then be released or the size and specialization of the team can be adjusted when things slow down again or requirements change, maintaining a company's flexibility.

Reduce labor and hiring costs. In most cases, it is more feasible for growing businesses to outsource IT tasks rather than gathering a team of their own. Firstly, because of the costs connected with the recruitment process (job post advertisement and hours of work spent on the interviews). Second, the majority of outsourcing companies are based in countries with lower hourly wages which results in a reduction of the software development costs or information technology services. Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don't always live up to your expectations. Outsourcing lets you focus on the most important.

Increase quality. Specialists in outsourcing companies have a high level of education and rich experience. It results in high-quality, ready to scale, and future-proof digital products and excellence in providing services. They follow the trends and use modern technologies. The outstanding quality of their work will save you costs on maintenance and further development. 

Extend expertise. IT Outsourcing also helps create a seamless flow when a company is trying something new - extending its proposal on the market or just require the knowledge of additional technologies. Rather than stressing their existing resources, which are set up to support the current services and tasks, or adding resources for a pilot period, they might outsource certain elements and ensure these functions in the right way for the new business. This ensures that existing business areas continue to function without disruption and dedicates experience and resources to deliver a specialist service, making the adoption of a new area as easy as possible. 

IT outsourcing helps to extend expertise

Start new projects quickly. A good outsourcing firm has the resources to start a project right away. Handling the same project in-house might involve taking weeks or months to hire the right people, train them, and provide the support they need. And if a project requires major capital investments, the startup process can be even more difficult.

Reduce risk. Outsourcing ensures business continuity while reducing the risk that poor quality work can bring, even for a short period of time. Also, technologies are changing very quickly. IT Outsourcing providers find and manage risks for you. They are usually much better at deciding how to avoid risk in their areas of expertise.

Maintain Operational Control. An outsourcing company can often bring better management skills to your company than what would otherwise be available without significant restructuring. Together with software developers, you can select other specialists (project managers, owners, quality assurance engineers, etc) that will help your company improve the workflow of the project and provide continuous delivery.

Businesses often think about outsourcing purely in terms of cost savings, but outsourcing can do more than just lower expenses. As your business grows, IT outsourcing can be a way to promote innovation, disrupt your industry, and access new skill sets that reposition your company in the market.

When considering how outsourcing can help you grow, focus on the value a company’s expertise adds to your company. IT outsourcing can provide an opportunity for you to innovate, grow, and rise above the competition.

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