WEB OUTSOURCING: Pros and Cons

Many modern companies have long appreciated the benefits of web outsourcing and are actively using it for business development. Transferring an enterprise to outsourcing means entrusting the conduct of certain business processes to a specialized contractor (outsourcer). Most often, third-party executives transfer accounting, advertising, logistics or IT.

In this article, I’ll explain how outsource web development successfully established itself in America and European countries. Let’s try to figure it out.

Not everyone understands the difference between outsourcing and conventional technical support, because in both cases the company delegates certain functions to contractors. But if technical support, as a rule, is of a one-time or periodic nature (there is a problem – they asked for help), then outsourcing involves constant cooperation over the agreed period of time (usually from 1 year on).

What is IT outsourcing?

If in a simple way, then this is the transfer of work to maintain the IT infrastructure of a specialized company. At the same time, you can entrust the contractor with the entire system (full outsourcing), as well as its individual components or services (partial outsourcing).

By service is meant the development, implementation and maintenance of IT infrastructure. Moreover, many companies prefer to order immediately a full package of services, which includes:

1. Round-the-clock monitoring of infrastructure or individual services;
2. Ensuring information security and protection against hacking;
3. Setting up and updating software;
4. Support and implementation of information backup services;
5. Consulting and training employees on IT issues, etc.

Pros and Cons of IT Outsourcing

Suppose you have established your own business and are now thinking about how to take off part of the load and transfer IT to outsourcing. Then it will definitely be interesting for you to find out about the most probable prospects and possible risks of such a decision.

Benefits:

You are saving money. After all, now you do not need to maintain your own staff of IT specialists – all of their work is performed by an outsourcer. The single window format for technical issues allows the purchase of the most suitable hardware and software at affordable prices.

Optimize your production processes. Having given IT to the care of contractors, you can completely concentrate on your own business and invest more time, effort and resources in the main production.

Get access to high technology. Need a top-notch specialist to set up cutting edge service? Want to introduce the latest development and stand out from the competition? Now this is not a problem.

Guaranteed result. The contractor is fully responsible for the competence of its employees and undertakes to provide all specialized services in accordance with the current SLA.

Financial advantages:

1. The contract is drawn up for a long period with a clearly specified amount, which allows you to plan the company’s budget.
2. Payment is made on the basis of acts of work performed.
3. There is no need to spend company funds on employee salary taxes, there are no additional costs for holidays, sick leave, etc.
4. There are no costs for the organization of jobs for employees, additional costs for rent.
5. Favorable conditions for the purchase of office equipment and software.
6. Quick solution of tasks by qualified specialists who ensure almost uninterrupted operation of the office even in critical cases.
7. Full control over consumables and their prompt delivery at the best prices.

Timeline benefits:

1. Thanks to an experienced team and proven actions, speed of action is achieved.
2. An automated application acceptance system provides the shortest possible response time.
3. The HR department does not need to conduct recruitment campaigns that are time-consuming.
4. There is no need to spend time monitoring and organizing the work of the department.
5. There is no loss of time in the event of illness or employee leave.
6. No problems with the dismissal of key employees of the department and the need for retention, search for new ones and training.
7. Reducing the time to find the right solution in complex, non-standard situations thanks to the availability and use of Help Desk.
8. Automatic accounting of work and building reports for certain periods of time.
9. Providing IT outsourcer with a clear plan for the development of infrastructure and interaction methods.

Disadvantages:

Adaptation. As a rule, at first some problems are possible due to the establishment of interaction between the contractor and the client.

Reduce managerial flexibility. Such an outcome is quite likely if you focus too many processes in the hands of one artist.

But the objective advantages of IT outsourcing still surpass the probable disadvantages. And if you look closely, it becomes obvious that all the possible risks are somehow connected with the short-sightedness of the customer or the dishonesty of the contractor. That is, to protect yourself, it is enough to observe only a few conditions:

1. clearly plan your business strategy;
2. to predict the profitability of IT outsourcing;
3. Do not transfer too many processes to one contractor;
4. cooperate only with trusted and reliable performers.

Attracting outsourcers gives a lot of advantages to companies whose resources do not allow to independently control all production processes. But even large corporations prefer to transfer IT to outsourcing in order to concentrate directly on business.