Benefits of IT Outsourcing

The increasing use of technology has overwhelmed many businesses to pace up with changing market dynamics. Ultimately, every business wants to grow and in this progressive world, we can grow only by helping each other. Outsourcing has empowered global businesses by allowing them to partner with any business that fits their business needs. For specifically the IT sector, Outsourcing has burgeoned and most of the businesses in the IT sector have taken advantage of software outsourcing services.  In this blog, we will be exploring how can a business needs to take outsourcing benefits in order to grow their business and optimize their business processes. Nowadays from small businesses to large companies, everyone is outsourcing their various IT functions from an IT outsourcing company

According to the IT outsourcing statistics by Technavio, the value of the IT outsourcing market is expected to reach $486.16B by 2024 growing by 5% during 2020-2024.

We all know what IT outsourcing is, but still, businesses are in dilemma, regarding whether they should outsource or not? We are here to unveil how any business can get benefited from IT outsourcing if they choose an apt partner for their organization. Without much ado, let’s get deep into why should businesses do IT outsourcing?

The first step to this is to decide whether you need outsourcing or not

1. Should We Outsource or Not?

Often we see businesses confused about whether they should outsource or not their IT services. To understand this, first of all, we need to know why should your business outsource and hire an IT outsourcing company over your in-house development team. Enlisted are some of the reasons why businesses may think of outsourcing their IT development services.

  • The incapability of integrating the latest Avant-grade technologies within their business.
  • No infrastructural support in order to implement planned project development services.
  • Lack of budget for developing the software solution.
  • Lack of skills in the in-house team to operationalize the desired project.
  • Nullifying the hassle.

When you have to choose between in-house and outsourcing a project to a third-party service provider, this can be a daunting task. As we discussed, there can be multiple reasons for businesses to make their choice between what is a necessity for their business and how can they prove to be beneficial.

It is vital for businesses to know and understand that outsourcing is a viable option if you are the know-how. Because there are a number of benefits that outsourcing is capable to offer. Small companies choose to outsource their development process because of limited resources and resource optimization. Your business can easily bypass the lengthy and time-consuming process of hiring, onboarding, and educating new team members by outsourcing and now collaborating with a pre-formed team of experienced professionals. Although you would use those experts for the project’s growth, you would most likely not need them forever, so outsourcing helps you to be versatile to scale up and down as required.

However, if your business has decided to outsource then you can select any engagement model that brings profit for your business. Based on that model, you can easily collaborate with other businesses and bring your dream project to reality. Usually, companies outsource to reduce operational costs &, maintenance costs, and to improve business efficiency. But before you decide to outsource to a third-party company there are a few points that we would like to bring to your attention to save your business from any further disputes and make it an exemplary and high-performant application.

2. What Should You Look at Before Outsourcing?

Now that you know that software outsourcing is an integral part of your business needs. It’s time for your business to leverage the benefits of outsourcing. Businesses around the globe can now outsource to any business depending on the type of services they want, technology, and in what price range. These are the following aspects that will help your business to make the right choice of an outsourcing partner.

2.1 Communication

The first and foremost parameter of choosing any business is to gauge the way they communicate. Start to look out for a partner who communicates easily and transparently conveys the need so that your business knows what to offer and what not. Since your outsourcing partner can be located at a different location depending on the financial engagement model you choose. Communication can develop trust and can make your organization build successful and long-term business engagements.

2.2 Knowledge and Experience

The second important checklist is to gauge the domain expertise and technical proficiency of the outsourcing development company. From their past projects and experience, we can understand the potency of business to cater to your needs.

2.3 Cost that fits your Budget

The third and most important aspect for businesses to choose outsourcing is cost. Cost is one of the most typical reasons why businesses would choose to outsource. If it doesn’t fit your budget but exceeds in quality then you should look consider this option. But firstly consider choosing those businesses that fit into your budget and offer the required services and offerings. Choose an outsourcing model according to business requirements and resources. IT outsourcing costs depend on outsourcing types such as offshore outsourcing, nearshore outsourcing, and onshore outsourcing.

2.4 Trustworthiness

When you are doing business with a company located anywhere in the world, it is pillared on the stones of reliability and trust. It is the most important factor for successful outsourcing ventures. This clearly indicates that the first step of doing business with another company is to trust their services and communication. This is also an important checklist for doing business, not from a technical perspective but from a business perspective.

2.5 Trained and Proficient Resources

Till the time your potential business has experienced, adept, and skilled technical resources, it is definitely worthy to collaborate with them. The team with the highest capability of developing cutting-edge applications must be chosen.

2.6 Software Agreement & Conditions

Until this part of your checklist is ticked, do not contract with any business. SLA- service level agreements or Software licenses or NDA- nondisclosure agreements are some of the major checkpoints of business collaboration. These agreements will help you do business without any further disputes or complications.  Security of intellectual property rights must be kept in mind while selecting outsourcing vendors.

However, after you’ve made the decision to outsource, you’ll have to choose a cooperation model. It will determine how the remainder of your dream product’s production is structured. To make the decision, you must first gather as many facts as possible and then ask yourself some crucial questions.

3. What are the Benefits of IT Outsourcing?

The complete blog is aimed to give your business a birds-eye view of how outsourcing can benefit your business. There are certainly a lot of benefits that can be harnessed from Software development outsourcing. So we have pinned down some of the major advantages for your business. Outsourcing providers will give you access to a large talent pool of dedicated developers that will give your business a competitive advantage. All the points here will connect with each other providing you a clear picture of why you shouldn’t give a second thought to outsourcing.

3.1 Cost-Effectiveness

The main reason why businesses choose to outsource is because of the major cost benefits offered by the third-party outsourcing vendor. When it comes to cost savings, outsourcing offers saving on a variety of options to save on. You can save on labor costs, technology setup, infrastructure, training, and hiring costs, and many more influential aspects. 

3.2 Skilled Developers

It’s difficult to get the hands-on expertise needed to address repetitive and complicated business IT issues. Hiring an internal employee with the right scope and depth of experience is challenging, and choosing someone who blends into the company’s working atmosphere and structure is much more difficult.

When you decide to outsource, the team you employ will have to be high-performing and skilled in order to deliver the expectations. Partner with a company whose experience in software development adds grace to your business foundations and functions.

3.3 Latest Technology

Companies with robust IT support must have the necessary tools and professional staff on hand, and they are prepared to jump right into new ventures. Implementing the same project in-house would take even longer due to the time it takes to mobilize the necessary tools and the fact that internal IT still needs to deal with their “day job.” Outsourced IT will also assist you in finding the appropriate application approach for your needs.

With the right outsourcing service provider, a business can resolve all the complex technology problems, discuss existing ones and develop it in

3.4 Focused Core Functional Tasks

If you have hired an immensely talented and knowledgeable team of software developers then you don’t have to look at that aspect of the business. Outsourcing companies assure to provide guaranteed results and consistent support during development and post-development too. Now your complete focus can be your core business function, planning and strategizing on making it more effective and productive. 

3.5 Risk Management in IT Outsourcing

There is a spur in rising technology that demands businesses to easily manage IT but there are some complex risks associated with it.IT Outsourcing is often turned out to be risky because there are various legal and confidential aspects of business involved. When you sign an NDA in IT Outsourcing, the clauses included can help your business mitigate risks without minimal hassle.

3.6 Faster Time to Market

The time it takes to manufacture a product is greatly reduced as it is outsourced.

It takes less time to find a team to create a solution or to do specific projects and bring out successful results from them. A specialist in the domain and technologies you’re involved in is a software development outsourcer. As a consequence, they may even have ready-to-use options and suggestions for your particular scenario. Also, they understand how important it is to be diligent and intense in order to create the quality you need under the deadlines you set.

3.7 Reliability and Efficiency

The success of every business lies in the foundation of the operations of the business. Trust loyalty and efficiency are very essential factors for any enterprise to do business. When you outsource your services to the right outsourcing partner, only then the profit margins be high and the business will be able to deliver outstanding outputs.

4. Conclusion

Finally, through this blog, we know how imperative it is for businesses to outsource and how collaborating with the right partner can bring fruitful results for your business. With this blog, we tried to give a clear demonstration of what factors you must consider before outsourcing and what are the benefits of outsourcing. Ideally in a collaborative environment, outsourcing offers businesses superior business results with a focus on core business functions that drives business to a path that consistently offers higher efficiency and qualitative outcomes. 

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


  • Leave a message...

    1. Janice R. Demmer

      Hi Itesh, thanks for sharing the article. The blog is interesting and informative to read. The benefits of IT outsourcing you mentioned above will surely help my startup to grow. Finally now I know how can I stay focused on my business needs and deal with complex situations.

    2. Gretchen L. Thomas

      Explanatory article! I would like to add more benefits to the blog, For example, flexibility and 24/7 support at minimal costs are the major key factors every business needs to rely on. Thanks for sharing the article.

    3. Joseph

      This article explains every benefit in detail. By reading this article I will be able to make a conclusion that when you are outsourcing IT services then do not make decisions only based on cost. There are a lot of factors which we also need to consider.