Outsourcing, in a nutshell, is transferring of usually-solved-by-inner-staff activities to specialized third-party service providers. Such an approach is believed to be time- and cost-efficient. Statista. com claims that global revenue from the outsourced services gained the sum of $88.9 bn in 2015, and it is going to get even higher. Let’s find out why.
Company focusing on the business processes.
In the very beginning of the outsourcing strategy, the core reason for outsourcing was money. Nowadays, the reasons are more of the strategic nature. Companies want to delegate responsibilities more efficiently and pay more attention to the internal business processes and issues a company specializes in.
More efficient use of the operating funds.
Outsourcing, especially offshore one, substantially decrease IT expenses of the company. According to KPMG study, 26% of companies that took to outsourcing did it for the sake of money saving. Keeping a full team of in-house developers is much more expensive. The freed money can be spent on the company’s leverage.
Getting access to external talent resources.
Robert Half report states that demand is bigger than supply on the current IT labor market. And it gets harder and harder to get the necessary specialist. With outsourcing, this task gets easier. You get access to the external staff resources and don’t need to waste time on personnel search.
Getting more of qualified services.
By this, we mean that if you outsource IT activities to a software company, you have your tasks dealt with by more technicians (let’s imagine that a developer has some problems with your project – he’s got almost the whole company of people who can help him).
Software outsourcing companies have a direct targeting towards technologies as opposed to the most businesses. As a result, they are faster to adopt improved ways of development and have more money/time/people resources for these purposes.
So, there are a lot of arguments in the outsourcing pool for taking to the outsourcing. But, as usual, it’s up to you to decide.