IT outsourcing spending in the United States is expected to reach $519 billion in 2023. Why are businesses of all sizes investing in IT outsourcing to help manage their information technology infrastructure?
The answer lies in the efficiency and cost-effectiveness of working with an IT outsourcing provider. As technology advances, the need for businesses to have proper and consistent IT care is also growing.
More and more businesses are undergoing a digital transformation and becoming dependent on smooth software performance as well as a strong cybersecurity framework to keep their clients happy and their data safe.
What is IT Outsourcing?
IT outsourcing refers to hiring an outside company to provide technology services to a business.
Unlike hiring a separate in-house team (or delegating to whoever has the most computer skills), IT outsourcing uses one team that serves multiple clients, allowing each to economize on the shared services.
What Are IT Outsourcing Services?
There is a wide range of IT outsourcing services you can opt for to enhance your business. The most commonly outsourced IT services include:
- IT help desk outsourcing
- Data storage
- Technical support
Aside from the different IT services you can choose from, there are also different IT outsourcing models to choose from.
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Different IT Outsourcing Models
There are five main IT outsourcing models that IT companies offer.
1. Full Process Outsourcing
In full process outsourcing, business owners hand over their IT infrastructure to an IT outsourcing company. The IT services will take full responsibility of organizing, managing, and providing support for the information technology-related tasks of the business.
2. Project-Based Models
In project-based models, business owners outsource one specific project or a series of projects to an outside IT provider. This is effective when a business does not rely heavily on their IT infrastructure , and they do not require consistent day-to-day help with their IT processes.
3. Hosting Models
In a hosting model, the business owner hires an IT outsourcing provider to run servers for them. In this model, the IT provider will be responsible for specific and minimal tasks, while the business owner still takes care of all their other IT needs themselves. Hosting models enable the business owner to gain access to storage space and assistance in updating their servers when required.
4. Development Center Models
In a development center model, business owners work with an off-site development center to manage all their IT tasks. This center is able to better manage employees to carry out IT operations that the home office can not accommodate.
5. Staff Augmentation Models
In a staff augmentation model, a business owner will hire an IT outsourcing partner to provide them with remote technicians that can be managed directly by the business owner. This is a good option for businesses who are short of staff or who can not find a local expert to fulfill their job position.
What are the Different Types of IT Projects Outsourcing?
IT outsourcing can be done onshore, nearshore, or offshore.
Onshore IT Services
In onshore IT services, the business will outsource the required IT services to a company that is within their home country. This model offers great communication as there is no barrier in language or time zone.
Nearshore IT Services
If a business opts for nearshore IT services, they choose to outsource IT services to a company in a nearby country. This model also offers good communication due to similar time zones and languages. It also comes with the additional benefit of generally being lower in cost than an onshore agreement.
Offshore IT Services
Lastly, offshore services entail outsourcing IT tasks to a company overseas. Though this arrangement is the least expensive, there are often communication complications due to language barriers and drastically different time zones.
The IT Outsourcing Trend: Why Businesses are Choosing IT Outsourcing Companies
66% of businesses in the United States outsource work from at least one of their departments.
There are several reasons that outsourcing IT departments are increasing in popularity. Let’s take a look at the top 3 benefits businesses gain by choosing to go with IT infrastructure outsourcing.
The Top 3 Benefits of IT Services Outsourcing
1. Access to Better IT Services and More Talent
The first benefit of opting for the services of an outsourcing IT development company, as opposed to having an in-house team, is that businesses can leave the IT complications to the professionals. An outsourcing contract allows your business to gain access to a large team of talented technicians who are equipped to handle your IT concerns better than you possibly could. The IT company has its own dedicated team to focus on managing system integration and ensuring you get the best IT services available.
2. Increased Business Performance
When small businesses choose to outsource their IT tasks to managed services, they gain the benefit of having one designated data center for their IT tasks. Since the experts are handling their IT infrastructure, business owners have a lot more time to focus on core business tasks and can work on enhancing their business plans. Since they are no longer trying to handle all their information technology needs on their own, they can focus their extra attention on actually streamlining their business and increasing their profit and ROI.
IT outsourcing companies also have teams dedicated to proactive services that monitor and respond to alerts, to help fix issues before they become problems. In-house teams don’t usually have the capability or manpower to provide this level of support.
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3. Lower Cost of IT Outsourcing
One of the greatest benefits of IT outsourcing vendors is the lower cost. IT outsourcing offers a contract-based and continuous support model in which the business’s information technology is constantly supported. This is much more cost-effective than the traditional break-fix model which requires the hiring of IT repair services at the time the issue develops.
When you hire the right IT outsourcing company, you can enjoy the benefits of IT outsourcing, which include better IT services, Increased business performance, and a lower cost of IT outsourcing.
Another benefit is having to avoid the trouble of finding and paying for management and security software. Most IT outsourcing companies provide that free of charge.
Hiring the Right IT Outsourcing Company — Outsourcing IT Services with Intellicomp
Are you looking for a way to enhance your business processes without having to worry about the information technology complexities all on your own? If so, Intellicomp can help. We are a managed services provider with a dedicated help desk to assist you with any of your IT needs.
Our proactive team will consistently monitor and maintain your network as well as your hardware infrastructure to ensure your IT services are running as smoothly as possible. We also offer IT consulting, business continuity services, cloud computing, and security and risk management alongside our other IT services.
Contact us today to learn more about how our high-quality IT services can help streamline your information technology systems and grow your business.
- 1 What is IT Outsourcing?
- 2 What Are IT Outsourcing Services?
- 3 Different IT Outsourcing Models
- 4 What are the Different Types of IT Projects Outsourcing?
- 5 The IT Outsourcing Trend: Why Businesses are Choosing IT Outsourcing Companies
- 6 The Top 3 Benefits of IT Services Outsourcing
- 7 3. Lower Cost of IT Outsourcing
- 8 Hiring the Right IT Outsourcing Company — Outsourcing IT Services with Intellicomp