Modern IT Outsourcing. 8 Benefits of Using Outsourcing in an Uncertain Economic Environment.
A constrained budget, economic uncertainty, and a lack of qualified employees – these are the three challenges most frequently pointed out by IT managers this year. We’ve had two quarters of recession behind us, and an economic upturn lies ahead of us. According to the European Commission, Poland’s GDP will increase by 0.5% this year and by 2.7% in the following year. In such conditions, many companies are unfreezing suspended projects. How can they mitigate the risks? The solution may be modern outsourcing, which offers companies greater flexibility in decision-making. How to smartly invest in technological development using IT outsourcing? Here are the 8 major benefits of using IT outsourcing in an uncertain economic environment.
Benefit 1: Focus on the Core Business.
The goal of every company is to achieve sales, earn money, and expand its business. All of this is in a highly variable environment, with limited time and a limited team. This requires companies to specialize more and more. Only 30-40% of most businesses’ activities are core to their business, while the remaining 60 to 70% are supporting services. These are precisely the ones that can be outsourced. Outsourcing allows companies to concentrate on achieving their primary goals without distractions.
Benefit 2: Flexibility.
Since change is the only constant in the economic environment, companies must be flexible. This is precisely what outsourcing offers when planning a new project and during its execution. It provides more freedom in decision-making, enabling companies to react quickly to changes and reduce costs more easily.
Benefit 3: Scalability.
Thanks to modern outsourcing, companies can scale resources as needed, depending on the project and the company’s requirements. During the peak of work, they can expand resources, and during less intensive periods, they can quickly reduce them. Outsourcing can also help small businesses operate on a large scale by providing access to similar technology and expertise used by large corporations. Independent companies providing IT management services can offer cost structure and economies of scale, providing a competitive advantage.
Benefit 4: Time.
High-quality IT service providers have access to resources that allow for the immediate start of new projects. Conducting the same project internally can require weeks or months of preparation. When it comes to outsourcing, the time it takes to assemble a team is several times shorter than when hiring in-house staff. The average time to acquire an expert is 3 days, and it can even be a matter of hours. The implementation of an expert into the work is also much faster. We’re dealing with a proven, verified specialist who understands that their task is to complete specific work within a set timeframe.
Benefit 5: Shared Responsibility.
Choosing a good partner who not only understands our business but also has converging development plans means sharing responsibility. This applies to both building a team and limiting it. Our responsibility for vacations, lower availability of specialists, illnesses, and motivation decreases. It’s the partner’s responsibility to take care of people and the team after the project is completed, whether it’s on time or before time.
Benefit 6: Higher Innovation.
Risk reduction in investments and sharing responsibility for certain areas make it easier to make decisions. This unlocks innovation. A quality partner has experience and resources that can support our modern projects.
Benefit 7: Greater Access to Talent.
According to the latest Awareson study, over 53% of IT specialists are choosing employment forms other than regular employment. While part of this is due to the need for flexibility and career management, the main reason is more practical: compensation. Contractors benefit from tax optimization, but their rates, due to higher risk, are about 20-30% higher than those of salaried employees. The more experience and specialization, the greater the reluctance of employees to sign regular employment contracts. Companies that are not flexible in terms of employment forms must resort to outsourcing or accept losing access to some of the best candidates.
Benefit 8: Experience.
Hiring, training, and turnover. Managing employees in the IT department can be very costly and requires a lot of attention. This also means that employees are constantly in a learning process. Outsourcing IT services to an external company means collaborating with an experienced team and transferring the financial burden of maintaining them in a state of constant readiness for work. Companies providing managed services often encounter similar problems and can solve them based on their experience. The same applies to experts working for them, who have completed many similar tasks.
It’s important to remember that while outsourcing is an effective tool, it also presents challenges. Among the major ones are over-employment, a decline in the commitment and motivation of contractors, and challenges associated with remote work. It’s important that the business partner you choose is not only aware of these problems but also seeks solutions through education, engagement, and motivation of experts.
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