IT outsourcing has become one of the world’s fastest-growing high-tech industries. First of all, that’s all about operational costs management. Many companies all over the world don’t see any sense in creating their own, for instance, development departments if there is an option to hire IT outsourcing companies. Thus, companies have an option to save money, time and resources while the entire work is done by the professional team.
Why is IT outsourcing so profitable? The first reason is that you can hire a team overseas. This means the payment rate will be lower, while the skills of the team you hire are rarely worse than those of local IT specialists. Secondly, it is a great way to save time – building an entire department from scratch can take months or years, while here you just pay and get everything done on a turnkey basis. Finally, IT outsourcing for companies means that all of the responsibility is on the contractor’s chest.
But it isn’t that simple. You have to know that your potential partner is professional, skillful and capable of taking care of all duties you put on them – but how can you check it out? That is the reason we have written this guide.
What processes and entire niches can be outsourced?
1. Marketing
You can outsource your marketing, at least the biggest part of it. Surely, you will need the CMO to develop your strategy, vision and branding, yet all the other work can be easily done by outsources. The advantage here is that by outsourcing marketing, you put off your chest a need to hire SEO specialist, graphic designers, SMM managers, videomakers, PPC-specialists and so on – all those specialists are already in the outsourcing team.
2. Software development and integration
Rarely a software development company will outsource its main function, yet for some large enterprises it is vital to have their software solution be adapted to their processes and needs – thus they choose IT outsourcing from specific companies that provide such services. This also relates to integration – when an enterprise needs two of its business systems to be integrated, it comes for outsourcers to get it done.
3. Telecom
There is no precise data on how many companies outsource call center functions to third-party companies, yet the current market value of call center outsourcing is over 88 billion US dollars. Seems a lot, especially if we take into account that overall call center software market is only 26.5 billion US dollars for 2022. Businesses believe that trained teams will provide better customer service, and for less money.
4. Cyber security
A controversial example, yet real. Many companies struggle to find good cybersecurity specialists and form an entire department. Therefore, they go fo outsourcing services, and that’s not the worst way out. You always can sign the SLA with your cybersecurity team which will form precise requirements to cybersecurity standards – and there are outsourcers who can meet these requirements.
How to choose an IT outsourcing partner?
Look at the cases
IT is a high-tech industry, and the competition is tough too. You can’t compete in IT outsourcing if you can’t provide your potential customers the real cases where you performed as an effective partner. Thus, always look at the cases of the company you are considering a potential partners. In most cases, you will see them at their website. Ask for additional cases during starting stage of the communication.
Look at the size
Often small outsourcing companies offer exclusively affordable prices for their services. Nevertheless, it is a biggest pitfall you may face. Ask yourself: for how long will I need their services? Will they be able to scale up when needed? Will their capacities and capabilities cover my needs after a half of a year or more? There is where you can make a mistake. Your partner should be stable – both organizationally and financially to walk a walk with your business. On the other hand, you likely won’t be treated as a very important client (VIC) in a large-scale outsourcing company as they have too many projects.
Rule of the 5%
There is an unwritten, yet vital, rule in outsourcing business. It says than unless you take more than 5% of outsourcer’s capacity for your projects, you will never be considered a high-value customer. What means high-value customer in this case? It means dedication and attention from the outsourcer to your product. If you are ready for such the way for thing to go on, than it is okay. If you want to be treated specifically, think again about the type and the size of outsourcing company you want to work with.
Check out the expertise
Even after checking the past cases, it is still not a guarantee of 100% professionalism. We don’t concern even the professionalism itself, but an expertise in specific areas where you may need this expertise. Thus, start a detailed communication – ask about specific employees you need, processes they worked with, issues they faced in the past and the ways for their resolution. You are an expert in your field, and you know what you need. That’s the reason you come for outsourcing – so you know the questions to ask to discover whether your potential partner is qualified enough.
Conclusion
As you can see, there is not that many steps to take to find a reliable IT outsourcing partner. Nevertheless, pitfalls always await. Besides what is said above, you have to go though a tough path. Checking reviews, communicating with past clients of your potential partner, long negotiations, effortful process of forming detail technical specifications, SLAs and NDAs – that’s what you have to be prepared for. Nonetheless, the market of IT outsourcing keeps growing and becomes one of leading industries – the US alone is forecasted to reach over 213 billion US dollars for 2025.
Understanding that choosing a reliable and professional IT outsourcing vendor is a tough task, we want to come with a recommendation. N-iX is a trustworthy and respectful company that has expertise in numerous niches, including retail, telecom, finance, healthcare and manufacturing, with numerous options of IT process outsourcing. This includes software development, cyber security, data analytics, AI consulting services and so on.
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