Are you considering hiring IT outsourcing services for your company? Explore key strategies, benefits, and potential pitfalls of outsourcing IT services.
What you will find in the article:
- Definition of IT outsourcing
- Advantages of IT outsourcing
- Models of IT outsourcing
- Services covered by IT outsourcing
- Benefits of IT outsourcing
Nowadays, the vast majority of organizations cannot operate without IT solutions. IT systems are the foundation for scaling business operations, and a significant number of companies face the challenge of filling in resource gaps to address all technology-related issues. Small businesses often cannot afford a dedicated person or an internal department responsible for IT. In medium and large organizations, there is often a shortage of specialists in specific fields, making it difficult to provide holistic IT support for the entire company.
What is IT outsourcing?
Outsourcing is a process that involves assigning specific tasks or processes to an external company. It allows organizations to focus on key aspects that are necessary for business operations, relieving employees of extra tasks, such as providing appropriate IT tools, ensuring cybersecurity, or analyzing data.
IT outsourcing enables companies to delegate various tasks related to technology, such as software development, infrastructure management, or technical support, to external IT service providers who specialize in each field. These providers have the expertise, knowledge, and technologies necessary to perform each task to the highest standard.
What is the pricing for IT outsourcing for businesses?
The pricing of outsourcing services depends on the size of the organization, its business nature, and the IT services the company wants to separate from the organization. Most of them opt for IT outsourcing based on individual quotations.
Professional services are often billed through a monthly subscription for a fixed fee, which is determined based on an agreement between the client and the service provider. Thanks to cost predictability, IT outsourcing is more and more used by organizations in both public and private sector.
Basic service packages for small organizations with a dozen or so employees start from a few hundred PLN per month. Comprehensive IT outsourcing packages for large enterprises can cost even tens of thousands PLN per month.
Opting to delegate IT tasks outside the organization allows for cost reduction while simultaneously increasing the quality of IT services. IT outsourcing ensures business continuity, and companies specializing in service provision guarantee quick troubleshooting, data backups, and access guarantees that are often unattainable for most companies with internal IT departments. Peace of mind and security assurance are often more important than the cost incurred in IT outsourcing. It’s worth noting that the service price includes access to the database of verified candidates from the market providing this service. One more advantage is a shortened recruitment and technical competence verification process, which also includes payroll service competencies for the project.
What is included in the IT outsourcing offer?
The IT outsourcing offer is highly tailored to the clients’ needs. In the market, there are three basic models that can be distinguished: full outsourcing, partial outsourcing, and dedicated outsourcing.
A comprehensive model service is full IT outsourcing. Within this service, an external company handles all functions and tasks related to information technology. In full IT outsourcing, you can expect comprehensive strategic IT consulting and:
- Infrastructure Management: The IT provider can manage servers, networks, data centers, and other technological infrastructure of the company.
- Technical Support: Providing technical assistance for both internal and external clients of the company.
- Software Development: Creating, developing, and maintaining software tailored to the company’s needs.
- Cybersecurity: Securing the company’s network and data against security threats.
- Project Management: The provider can manage IT projects and programming teams.
- Cloud Services: Delivering services using cloud computing, such as Amazon Web Services, Microsoft Azure, or Google Cloud.
- Data Analysis and Reporting: Assisting in data analysis and creating business reports, e.g., using Microsoft Power BI.
- Monitoring and System Maintenance: Continuous monitoring of the company’s IT systems and maintaining them in good condition.
- Database Management: Administration of databases and ensuring their reliability and performance.
- Remote Assistance Services: Providing remote technical support and solving problems remotely.
An intermediate option is partial IT outsourcing. In this model of collaboration, a company chooses to delegate only certain functions and tasks related to technology and IT to an external IT service provider while keeping other IT aspects within its internal team. This means that the organization maintains some control over its infrastructure and IT processes but outsources specific tasks to an external entity. These often include the tasks that cannot be efficiently handled by in-house IT departments, such as maintaining cybersecurity or monitoring and maintaining systems. Frequently, within partial IT outsourcing, companies opt to outsource tasks related to user support, known as the helpdesk, which can be time-consuming and resource-intensive.
Partial IT outsourcing provides a company with greater flexibility and control over its IT resources while allowing access to the expertise of an external provider in selected areas. This approach can be attractive in situations where a company wants to minimize risks and retain control over key aspects of its IT infrastructure.
The latest among popular collaboration models is dedicated outsourcing. This solution allows companies to use the benefits of IT outsourcing even with a limited budget. Such an approach addresses the challenges faced by small and medium-sized enterprises, as well as organizations whose business model is not fully dependent on IT infrastructure.
Dedicated outsourcing services minimize the number of tasks performed, while maximizing the efficiency of the external organization providing IT services. These solutions prove to be effective when an organization seeks to cut costs. The team of specialists often operates in an offshoring model, working remotely, which allows for cost minimization.
For whom is the IT outsourcing offer intended?
External IT support for businesses, thanks to its high versatility, can be utilized by various organizations and enterprises regardless of size or industry. IT outsourcing is nowadays considered as an added value for business.
The outsourcing of IT services is successfully employed by the SME sector (small and medium-sized enterprises), large corporations, non-profit organizations, startups, educational institutions, and even governmental entities.
Which IT specialists can be outsourced?
The current offering of organizations engaged in IT outsourcing allows the outsourcing of practically every IT specialist. Among the most commonly outsourced professionals in the field of IT are:
- Programmers – they create software, applications, and IT solutions tailored to clients’ needs.
- IT Security Specialists – they are responsible for ensuring protection against cyber threats and monitoring network and data security.
- IT Administrators – they are in charge of the proper functioning of IT infrastructure, including servers, networks, data centers, and end-user devices within the organization.
- DevOps Engineers – individuals who combine software development processes with infrastructure management to deliver software faster and more efficiently.
- Cloud Computing Specialists – they are responsible for configuring and managing cloud services such as AWS, Azure, or Google Cloud.
- Artificial Intelligence and Machine Learning Specialists – individuals developing and implementing AI models and algorithms to solve business problems.
In practice, outsourcing companies typically provide clients with IT specialists who are challenging to acquire in the market due to their scarcity or high financial expectations.
What IT services does outsourcing cover?
IT outsourcing encompasses a wide range of technology-related services, and the type of services depends on the company’s needs and business goals. Currently, the most commonly outsourced IT services include:
- Software development and maintenance
- IT infrastructure management
- Technical support – helpdesk
- Managed services
- Cloud services
- Cybersecurity management
- Data analysis
- Implementation of services related to artificial intelligence and machine learning
- eCommerce services
- Marketing automation services
What are the benefits of IT outsourcing?
IT outsourcing is characterized by numerous advantages that attract companies and organizations from various industries, regardless of their size and technological sophistication.
By implementing IT outsourcing, businesses can focus on key elements of their operations without the need to manage IT infrastructure, which serves as a tool for achieving organizational goals.
Outsourcing IT tasks outside the organization provides companies with more time, and the service is often a significant cost-saving measure. Access to expert knowledge is also crucial for small and medium-sized enterprises.
Specialized teleinformatics solutions offered by external companies allow for high scalability of infrastructure, access to the latest technologies, and flexibility. This translates into faster project implementation, reduction in the risk of IT infrastructure problems, and 24/7 support.
What IT projects can be outsourced?
IT outsourcing is a future-oriented service that continuously adapts to the current market needs of modern organizations. This means that practically any IT project can be subjected to outsourcing, with the most frequently outsourced projects being those that are the most innovative and up-to-date.
It is worth emphasizing that many organizations opt for outsourcing tedious, repetitive, and time-consuming projects, allowing for better utilization of internal human resources within the organization and resulting in workflow optimization.
How to choose a trusted IT outsourcing provider?
Choosing a trusted IT outsourcing service provider is crucial due to the significant impact of their actions on the entire organization.
When selecting a company offering outsourcing services, it’s essential to carefully analyze the certifications and documents confirming qualifications, as well as to review customer feedback. Verifying the comprehensiveness of the offer is crucial to ensure that one organization can address all the needs of the client company.
Another important aspect is the availability of the latest technologies and equipment to ensure that services comply with current market standards. It is advisable to establish a suitable Service Level Agreement (SLA) that guarantees maximum performance, compliance, and availability tailored to the client’s requirements.
Costs also play a significant role. Before deciding on a long-term and continuous collaboration, which is characteristic of IT outsourcing, it is essential to analyze the costs by conducting a thorough Total Cost of Ownership (TCO) analysis.
The steps mentioned above, along with a collaborative relationship and effective communication between the client and the IT outsourcing provider, will allow for the preparation and implementation of a long-lasting and efficient partnership.
