IT Outsourcing Examples - An Industry Specific Post

In the pursuit of becoming one of the leading businesses, every business needs to have a robust, scalable, and trustworthy IT infrastructure and services. In this blog post, we have highlighted a few examples of IT outsourcing.

IT Outsourcing has been implemented as a strategic game-changer for a variety of businesses irrespective of the industry they belong to, the domain they are in, or type, size, or scale of business. In this blog, we will be discussing all the aspects that contribute to a successful and sound software-rich company.

1. Defining the Need to Outsource IT

As we started, Most enterprises around the globe have been considering IT outsourcing services as one of the profitable methods of doing business. There are plentiful reasons behind it that need to be considered before we decide to outsource. Outsourcing work is not a methodology but it has now been converted into a need for many companies. Every business inevitably needs IT outsourcing for its business growth. There is a thin line difference between software outsourcing and IT outsourcing. Mostly all types of companies get confused between the two.

So if we were to differentiate between the two then we would differentiate them with the needs of Software outsourcing and IT Outsourcing.

IT outsourcing is the practice of using a third-party service provider to deliver IT-enabled business processes, application resources, and technology services in order to run a successful business. There are other aspects as well that we can include in IT outsourcing. Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), utility systems, and cloud-based services are all examples of IT outsourcing services. Several types of industry-specific software development are also included in IT outsourcing such as application development, mobile, web design, web app development, and more.

While if we talk about outsourcing software development then it is a process of outsourcing all types of development services that involve building software complex or simple with the help of an outsourced team. Website development, mobile app, integration, or any other way of developing applications. 

There are multiple advantages that businesses receive while using IT Outsourcing.

Advantages of IT Outsourcing

Some of the reasons why businesses and developers from all domains want to adapt outsourcing certain aspects of their operations.

  • Expertise: An offshore vendor/business may have specialized facilities and/or technological expertise, rendering them superior to workers within the outsourcing company at a given mission.
  • Reduced costs: Lower labor costs, operations, and even supplies are some of the most compelling reasons to outsource jobs to another country. Cost reduction is what makes many companies outsource work.
  • Scale-up and Down resources: Outsourcing enables operations with seasonal or pays on-demand to buy in additional resources when they’re needed and release them when they’re no longer needed.”

Different industries use different types of IT outsourcing services, and every business needs IT and software outsourcing for their businesses. Here in this blog, we will be discussing all types of software development needs that an ideal business from any domain may need.

2. Top 5 Business Domains and Their IT outsourcing Strategies

2.1 Manufacturing

Many industries including manufacturing are seeing an increase in automation and robotics. Some restaurants are also using machines to transport food and provide consumers with self-ordering kiosks. There is an innumerable number of software developments made in favor of businesses to promote the transparent, rapid, and highly efficient operational process. We have been seeing a sophisticated growth of services within the manufacturing business.

According to industry estimates, automation results in an average labor cost savings of 16 percent in industrialized nations.

Not just automation, there are a plethora of technologies that have clearly disrupted the manufacturing sector. All you need is unique and innovative software to handle things pretty seamlessly. Technologies like

  • Robotics
  • 3D printing
  • IoT
  • AI/ML
  • Blockchain
  • Custom Software App development
  • Predictive analytics

Developing custom software for the manufacturing industry can create wonders and can help businesses draw unique business insights for themselves. Their process path is precise, effective, and efficient.

 Most companies that prefer to outsource critical IT operations are pleased with the outcome. To effectively incorporate outsourced IT into dedicated hybrid teams, businesses can use more cloud services and grow in-house roles rather than phase them out. Your development process will offer quick code performance and effectiveness.

2.2 Accounting and Finance Software

When you think of Accounting and finance, do you think any business will be ready to outsource their accounting services? Well, this is the most misinterpreted aspect when you are asked to outsource. Because when it comes to accounting and finance, you need to have the most trusted and reliable team of accountants and finance managers. Here in IT outsourcing the software developers or the software development team will be dealing with critical and crucial data and information so better to sign NDA while outsourcing IT services.

There is a huge technology advancement seen in the account and finance sector as well. We have been seeing technology trends like automated computing power, blockchain to store useful and encrypted data in your accounts AI, and IoT smart devices that protect data from leakage.

To streamline your company, you outsource financial services to better-qualified accountants. Offshore workers carry expertise and tend to have access to the most up-to-date equipment and technologies. They can not only manage your accounts effectively, but they can also provide you with financial tips and recommendations. They will assist you in running your business more profitably and at higher margins.

2.3 Human Resources

You might have heard of HRM- Human resource management tools, how does this works, or how can a team create human resource management software. It is not just a management software in human resource development areas, there are various other factors as well that are interlinked in the HR department. Networking tools, and analytics tools that work with cognitive computing and help businesses track, monitor, and analyze the performance of existing employees. 

Outsourcing IT services to other countries or companies is a wise choice for businesses to make and break their organizational foundation, the HR department is an integral department and brings new resources within the company. Hence, it is very important for businesses to choose the right software that brings outright results for them. Investing a lot in software by developing it in-house with a fear that the information does not get leaked. So ideally partnering with a software development company with an indigenous team of software developers is an ideal choice for a resilient and highly efficient software development ecosystem.

2.4 Marketing

In the wake of uncertain times when you are immobile and cannot move from one place to another. All your business can function is through online services. Marketing can be done in both ways- Online as well as offline. Nowadays online marketing is at its peak, you can hear it, here there everywhere. Online marketing Social media marketing or brand promotion- there are multiple names to this. As a whole, enhancing business presence online is called online marketing.

Social media user numbers increased by more than 13 percent over the past year, with nearly half a billion new users taking the global user total to almost 4.2 billion by the start of 2021-.Jan 2021 annual Digital Growth

In order to make a successful business environment, your business needs to take steps in the right direction. Also, not every business knows why to outsource their IT services to an offshore or onshore software development company and what advantages IT outsourcing offers. Here are some of the advantages that IT offers for Marketing companies.

  • Your company can save time by outsourcing.
  • You can hire social media professionals through outsourcing.
  • You will use an agency’s technology stack if you outsource.
  • Outsourcing will help the company save money.
  • Most agencies may assist with other marketing-related issues.

2.5 Information Technology Outsourcing Management and Services

IT outsourcing has become very popular in the technology industry by allowing many businesses to take advantage of new-edge technology, competition, and operational aspects. It is an approach that not only benefits one domain but multiple domains of various industries. And with time as the IT sector has gained too much attention because of its business transforming nature, IT outsourcing has become more popular. And this is primarily because IT outsourcing is the most viable approach. Besides, businesses choose IT outsourcing service providers to get access to a wide talent pool.

IT outsourcing is a very responsible part of the industry as it benefits a variety of sectors but mainly the technical sector.

Four of the key reasons why technology companies or start-ups might want to outsource are as follows:

  • Enhances Team Strength
  • Boosts Lack of In-House Expertise
  • The in-house team is now more focused on flexible
  • Meet Difficult Deadlines
  • Delegate Tasks
  • Reduces  the pain of Hiring and Vetting International Talent
  • Faster talent Acquisition and Quick team Upscaling

Multi-vendor outsourcing is also a term used in the IT sector to describe outsourcing various facets of one’s IT services to different businesses. It simply means outsourcing your business to multiple vendors. It would be similar to obtaining IT architecture, microservices, cloud services, AI, ML services, and all other production or design services from various firms in order to accomplish the best of everything. We will also be discussing the generic examples of IT outsourcing types.

What are the generic Examples of IT outsourcing Types?

  1. Web application development
  2. Hosting
  3. Software development
  4. Tech support
  5. Database management & development
  6. Infrastructure
  7. Telecommunications
  8. Website maintenance
  9. Network & Communications
  10. Disaster recovery
  11. Email security
  12. Data Center management
  13. Threat protection
  14. Cybersecurity

3. Final Thoughts

In this blog, we have seen how businesses around the world from various domains can gain benefits from IT outsourcing. IT Outsourcing companies have specialized skills, resources, and experience that you wouldn’t be able to afford on your own. Such certificates or accreditation that the work necessitates and comes as a responsibility of the outsourcer. IT Outsourcing companies keep up with market shifts and developments, practice new strategies, and develop their skills by working on their area of expertise. We don’t think you should wait any moment, because Time wasted is never regained.

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.


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    1. Bill Spencer

      If you are in a dilemma whether you should consider IT outsourcing or not. Or you are afraid that your business is not suitable to consider outsourcing for your IT needs. Then you must read this article. Here it is discussed very comprehensively which industries are taking advantage of IT outsourcing. By studying these examples you can make your mind whether you choose IT outsourcing or not.

    2. Iqra Alyia

      This article well explained how IT outsourcing can be beneficial for different industries. Due to technical advancement now it becomes compulsory to adopt new technology by every industry but businesses do not possess expertise in these technologies. Hence outsourcing has become very important here.