Unlocking Business Growth: Outsourcing IT Work is the Key toSuccess

Outsourcing refers to the delegation of specific tasks or processes to external vendors who specialize in those areas. In this blog, we will discuss the reasons why companies should outsource their IT work.

Reasons to outsource can vary across industries and functions. But the main benefits are summarized below:

Successful growth hinges on working with the right, talented, and dedicated people. However, finding and hiring such individuals can be a daunting and expensive task. The solution to this challenge is to outsource the work.

There are likely tasks that require the help of experts on a part-time or one-off basis, such as creating an app, a website, a logo, or developing a marketing campaign or content strategy. Outsourcing provides access to these talented individuals while saving both money and time on in-house hiring.

At Hanabi Technologies, we specialize in IT team augmentation services, which involve bringing in remote developers and product experts to speed up the software development process.

Building an IT team from the ground up can be an expensive and time-consuming activity. It can add to the fixed costs of your organization. Outsourcing IT work can help companies in this aspect. You can complete a project in a fraction of the time when outsourced as compared to building an in-house team. Companies can save money on salaries, benefits, and overhead costs by outsourcing to countries with lower labour costs. The company can reinvest the savings in the core business, allowing them to achieve growth and scale more quickly.

When a company outsources its IT services, it shares some operational risks with the third-party vendor. For example, if a company decides to set up an IT team, vendors can take care of employee hiring, training, salaries, and scaling up or down as per demand. The provider will ensure that the team works in a proper office with adequate workspace and required infrastructure. Additionally, the provider can take care of employee training, monitoring, and salaries as part of the package.

These vendors usually have experience and expertise in handling similar projects, making them better equipped to mitigate risks associated with the project. This helps companies avoid costly mistakes and reduce overall project risk.

Business investments always carry some degree of risk like changing markets, competition, government regulations, financial conditions, and evolving technologies. By outsourcing, the provider assumes and manages much of this risk for the company, leveraging their industry-specific knowledge, particularly in areas such as security and compliance. Thus, outsourcing providers are better positioned to decide how to avoid risk in their areas of expertise, reducing the risk for the company.

By outsourcing IT work, companies gain the ability to engage with different vendors for different phases of a project, making them more modular and flexible in their approach. This allows them to pivot according to the need of the market, which is particularly helpful in an environment where market conditions are constantly changing. With the ability to respond to customer needs in a timely manner, companies can remain competitive and achieve their goals. This adaptability is key to success, particularly in the fast-paced world of IT, where innovation and agility are essential for staying ahead of the curve.

The Global outsourcing survey 2022 by Deloitte reported that over 76% of respondents outsourced IT services, with cybersecurity, app/software development, and IT infrastructure services being the most outsourced areas. This highlights the growing trend of outsourcing IT work and its importance in the modern business landscape.

Outsourcing can help companies reduce costs associated with hiring and training employees. Instead, they can rely on the expertise of a vendor to handle certain aspects of the business. This can help free up time and resources for businesses to focus on their core competencies and strategic initiatives. Outsourcing allows companies to access a broader pool of talent, including experts in niche areas. It can also provide access to the latest technologies and best practices without burdening the core team.

Outsourcing IT work can be a growth hack for startups looking to scale quickly. Startups can access a broader pool of talent and expertise, enabling them to innovate and deliver products faster. The startups can access the technologies and techniques that the established competitors use without investing too much into them. This can help startups to gain a competitive advantage and achieve rapid growth.