Fact or Fiction: What You Need to Know About Outsourced IT Companies

Outsourcing has been the key to success for many businesses and is a commonly used business practice, especially among the IT industry. However, many myths have circulated about outsourcing, which have caused many companies to stop implementing it. The term has actually become a bad word, associated with the job losses in the United States and poorer quality services. In reality, there is much more to that story than outsourcing. Let’s debunk these myths and uncover what is fact and what is fiction. grow your business book

Outsourcing Facts

Outsourcing  can save both time and money for your company. Here are some interesting facts about outsourcing in the IT industry:

  1. More than 94% of organizations use some form of IT outsourcing
  2. 55% of IT companies say that outsourcing saves a significant amount of money each year. 
  3. 87% of businesses outsource tasks because of reduced costs and improved efficiency.

Outsourcing is a great method for businesses to access a larger talent pool at a lower cost. Some of the advantages of outsourcing within the IT industry are:

  1. Not having to hire more employees: Outsourcing allows businesses to pay their employees as independent contractors. This saves money as they do not need to pay for benefits, training, etc.
  2. Larger Talent Pool to Choose From: Outsourcing gives companies access to talent in other regions, allowing them to look for specialized help that’s tailored to their needs.
  3. Lower Costs: Being able to choose from a global talent pool allows you to find the right talent for the right cost. Hiring remote workers is an example of how outsourcing can help your business save on labor costs.

Debunking IT Outsourcing Myths

There are a lot of preconceived ideas about IT outsourcing; some are based in fact, but many are fictional. Let’s debunk some of these common IT outsourcing myths once and for all. 

    1. Only large companies benefit from outsourcing: Small businesses can profit from outsourcing just as much as large businesses. In fact, small businesses that hire freelancers or remote workers can benefit greatly from outsourcing, as costs  are significantly reduced.
    2. Reduced costs is the only benefit of outsourcing: While this is definitely a benefit of outsourcing, there are many other benefits as we’ve shown previously, such as increased efficiency.
    3. Internal IT is safer than outsourcing: Having a third party actually gets rid of a lot of internal risk as those who have access to your network have less access to sensitive information.
    4. Support quality is lower when outsourcing IT: Employees who are outsourced by IT companies are just as much a part of the team as the other faces you see every day. 
    5. Outsourcing comes with a distance barrier: Outsourced employees do not need to be from different states or countries; they could be remote workers in the same area as you. Local outsourced employees who work remotely may operate and interact with you in your time zone, and are able to show up for in person work if needed.

Outsourcing is a way for businesses to fill the gaps in IT and allows them to save money and increase efficiency. Not all factors will affect organizations the same way, as each business is unique. It is important to establish a clear understanding of the pros and cons before implementing it into your business practices. Learn more about how IT businesses like Excedeo can help your business reach its full potential and contact Excedeo today.