- "Is running an IT department our core business ?"
- "Are we getting value for money?"
- "Can we trust anyone else to manage our IT ?"
Today almost every company runs its own IT department because information technology is becoming increasingly pervasive. The growing importance of IT and the dependance of the business on its IT infrastructure have caused many executives to ask these questions.
One of the primary reasons to consider outsourcing is when it is outside your company's core competence. Investing man-hours and budget in unfamiliar tools and technologies reduces your team's effectiveness. Turning to an outside provider with expertise in a different OS, a complex SDK, or a new communication protocol is smart.
Also software development for different requirements requires specialized knowledge. The right talent and expertise can make the difference between success and failure; but finding, hiring, and integrating new staff is difficult and expensive. A quicker solution is to hire an outsource firm that has already recruited talented engineers and designers with the expertise you require.
Focus your talent on your business.
We focus ours on your IT Infrastructure.
Outsourcing allows customers to realign resources so they can focus on their core competencies. Customers don't need to worry about day-to-day technology operations support.
It is difficult to quarrel with cost savings, and the companies that approach outsourcing with careful planning save money. In a usual scenario a client company can save up to 50% of its IT costs comparatively to an in-house, on-site, traditional software development process.
Traditionally, companies have outsourced for tactical reasons - reduce costs, free up cash, obtain resources not available internally, and improve their performance. Outsourcing some functions can shift costs from fixed to variable, thus enhancing a company's ability to manage costs more effectively. If a company is moving into a new arena, outsourcing enables it to add new functions with minimal impact on internal resources.
Organizations today also approach outsourcing as a business strategy. Nowhere is this more evident than in high-tech companies, such as Sun and Microsoft. Drtina (1994) described these firms as "intellectual holding companies" because they focus so strongly on their core technologies while they purchase other services from companies that excel at delivering them. Thus, their entire operations function at a high level, yet they do not have to maintain everything. They get world-class capabilities without the risks involved in developing all of them.
Outsourcing is synonymous with flexibility.
Advantages of Outsourcing:
The savings your company can achieve can go up until 50% from your actual software development budget. In the mean time the quality and the schedule remains the same if not better.
You are able to use specific skills (for particular technologies) for a certain period without having to hire them or train them. Also if you think that you could retrain the team you already have you should take into account that you could have a better one working on your project in a much smaller time frame.
The time to setup a new project is reduced drastically compared to the time a project meets all the conditions to start in a traditional organization.
Your are able to use the IT resource for as long as you need and then stop the collaboration without having the problems you would have if you would hire a team. This means you can always switch the technology and choose a team suited for that technology.
It is very complicated to find and to train a talent in a certain field, therefore instead of retraining your old staff to fit a new technology you should change the working methodology and outsource your software development offshore.
Off-load of non-challenging work
You can outsource the routine work, the work that keeps you from focusing on the core business and creation of new features or new products.
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