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Why IT Outsourcing is More Economical

by: Sarah Joson

Tuesday, November 26, 2013 |

A lot of business owners are still not convinced that IT outsourcing is less expensive compared to doing IT processes in-house. They feel that the amount being charged by outsourcing service providers are debatable since most contracts cost thousands of pounds annually.

IT outsourcing less expensive

To have a better perspective on the topic, Business2Community.com published an article that lists down factors that make outsourcing more affordable as compared to keeping staff and IT work in-house.

Cost of labor is lower.
Outsourcing hubs, specifically the ones operating offshore, employ IT experts who offer services at much lower rates. For a specific position such as a data security specialist, a business owner would need to shell out at least £50,000 for one expert. This does not include the workstation, software, and employee training. So when everything is combined, they would end up with a much higher fee.

In the Hayes Resourcing and Talent Planning 2013 Report, it was stated that the average cost of hiring an employee on top of the annual salary is valued at £1800.

Surplus budget can be used for more important things.
Since business owners technically save on supplementary costs (computers, software licenses, etc.) when they outsource, they can reallocate the surplus budget to other important processes such as research and innovation of products, and all in all add value to the company.        

Solve data security challenges.
When it comes to data security, business owners either resolve issues aimlessly or ignore the entire thing. Reports showed that this often results to losses, data security breaches, and staggering financial damages incurred by a company. Acquiring the services of an IT support services provider to manage and keep your IT database in tip top shape ensures that you have experts who make sure that the IT operation is running smoothly.

Outsourcing also enables business owners to access skilled and experienced IT experts in different countries, especially when there’s a shortage of IT talent locally.

IT operations will be scalable.
Some companies lack resources to increase operations and integrate new solutions, resulting to hampered growth. If they opt to outsource IT processes to a provider, the growth of the staff and the operation will now be up to the provider.

Business owners can give the providers the guidelines on how they want things done, and check up on them periodically to ensure that things are going as planned.

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