What is outsourcing?

Introduction

What is outsourcing? Put simply, outsourcing is a business practise in which jobs and/or services are assigned to a third party. Outsourcing is used regularly across a number of different industries, including information technology services (IT).

When it comes to IT, an outsourcing agreement can cover everything from the development and management of an entire IT system, to more targeted, specific tasks such as software and web application development, system recovery and network services.

The idea of IT outsourcing in itself is simple; developers providing an IT solution to a business need. But why not just get the job done in-house? There are pros and cons to both solutions, which we’ll explore in detail. But first let’s take a closer look at the different types of IT outsourcing services typically available.

What is outsourcing: Types of IT services

A quality software company will be able to offer a wide range of IT outsourcing services from highly qualified, expert developers. Solidstudio is one such company, offering services in the following areas:

In-house vs outsourcing IT services

It’s possible to get every IT service required via an outsourcing agreement, but why not employ skilled developers to do it in-house? Here we’ll take a closer look at how outsourcing IT services compares to having your very own in-house team of experts.

Outsourced IT: pros and cons

Expertise: If your business lacks the technical expertise to handle complex IT issues, outsourcing is an excellent solution. Solidstudio has a team of highly experienced developers, able to provide expert help across a broad range of IT services
Cost: Farming out jobs to third parties might seem like the more expensive option, but as a rule, outsourcing IT services is generally more cost-effective than employing a dedicated IT team on temporary or permanent contracts.
Support: Outsourced IT support almost always comes with 24/7 support, as is certainly the case at SolidStudio. Services offered are designed to support individual needs, plus Solidstudio offers a three-month guarantee on any of its services. If issues are found in that time after build, the company will fix it for free.
Service Level Agreements (SLAs): Things like data privacy, data and content ownership and recovery can all be causes of concern when outsourcing IT services. However a quality development company will allay any concerns from the off, with clear agreements in place as to the level of service a client should expect. Service Level Agreements offered by SolidStudio, for example, outline the way issues are prioritised, response times and what happens if these KPIs are not achieved.

Our process

So you get a whole lot of expertise for less money - seems too good to be true, right? It’s certainly the case that outsourcing IT services works for many, but what about having your own in-house team? Let’s see how that compares.

In-house IT: pros and cons

Bespoke systems: One of the biggest advantages of having a dedicated IT team is the ability to build a bespoke system, which draws on the skills and expertise of each individual. As permanent employees, these staff members are invaluable, with in-depth knowledge of the company’s specific requirements and systems and on-site to handle any major issues quickly. There’s also the added benefit of a security breach threat being much lower than when outsourcing this work to a third party.
Longer development time: While there are huge benefits to having a bespoke IT system, the reality is building them takes time and significant initial outlay. In order to really make it worthwhile, a business must have a very clear plan on what skills will be required in order to build the system for the long-term – and this can be difficult to predict, even for the most forward-thinking leaders.
Employee costs: Employing skilled developers doesn’t come cheap. And recruitment costs, annual salaries and training costs are sure to make a significant dent in any budget. Training is particularly costly, with the IT industry constantly evolving, it’s vital developers stay up to date with the latest technology in order to provide the best possible IT systems.
Limited skills: Relying on a few people to manage an IT environment might be the most cost-effective solution, but isn’t always the smartest. A small team will undoubtedly have knowledge gaps, and then there’s the issue of who covers when sickness and holidays arise.

Outsourcing IT – is it right for you?

There is no one-size-fits-all solution when it comes to IT support. Sometimes a mixture of both outsourcing and in-house options work, other times going 100% into one or the other is the best way forward.

If you think your business might benefit from outsourcing IT services, start by finding a quality technology partner that understands your business and can offer the service that best fits your needs. For information on or more help with best software outsourcing services, contact us here.