Reasons Companies Needs To Outsource

The best time for businesses to outsource their IT development to an expert is now. Gone are the days when outsourcing involved only minimising cost and having access to cheap labour. Today, it entails partnering with IT consultants such as Hidden Brains to help revamp an organisation’s internal processes to deliver better quality service. This may be unattainable without professionals providing technical insight, high-end technology, and mental capacity to make things work.

Countless businesses and organisations require the services of IT consultants to boost and maintain their technological assets. However, some organisations function better with an internal IT department.

If you have never outsourced your IT needs, it might appear as a daunting task. But the anxiety is justified. Placing your confidence in another company to produce the results you seek can be a big decision, especially when the success of that business depends on outsourcing services.

However, be guaranteed that no matter the size of your company, IT development outsourcing may be the ideal and suitable step to take. So, regardless of your status as a business owner, Start-up, or established organisation, innumerable benefits and opportunities accompany allowing another company to bear the burden of your IT challenges. Among other benefits, it relieves you of the extra burden and brings progress to the company—even at a crucial stage.

Again, studies have shown that outsourcing is very effective. It is, and will always be, a smart option for all kinds of businesses.

So why wait? If you deny yourself the opportunity of outsourcing, you may gradually lose the competitive edge.
In this article, we will highlight five reasons you should consider outsourcing your IT needs to experts.

Top 5 reasons companies use outsourcing

1. You are guaranteed specialised professionals

One of the many advantages of outsourcing your IT needs to experts is that you are guaranteed up-to-date technical knowledge, skills, competency, and quality tools to drive the desired operational performance.

Imagine assembling exceptionally talented and skilled software engineers to bail your company out of its IT woes and deliver what is required of the business. Undeniably, the value of outsourcing is the wealth of expertise it offers. Due to the high cost of purchasing, implementing, and maintaining expensive tech tools and in-house resources, organisations turn to third-party companies to provide them with a greater scope of technical expertise.

What IT development experts do is assign a team of high-grade IT professionals to clients who may lack such proficiency in their organisation. This provides clients with the opportunity to experience the best industry practices and enjoy all the experience gained from years of partnering with diverse businesses for outsourcing.

Over time, there have been arguments as to why experts should only be consulted when there are cases of complex IT projects and a need for specific competencies. This topic has been raised amongst SMEs because outsourcing provides them opportunities to gain from the services bigger businesses enjoy.

Nevertheless, a distinct feature of the outsourcing partnership is that knowledge gained from expert companies provides organisations and businesses valuable insights to enhance their operations.

Businesses can benefit from outsourcing services in many ways. The outsourced company or agency may make changes to the existing facility, introduce a novel technology and approach, and provide technical support to teams, hence, allowing clients to enjoy all the benefits of outsourcing.

Now, we’re not insinuating that using an in-house team will not be effective in meeting the company’s expectations. However, we doubt that their skillsets and knowledge will be as robust as those of a team of highly experienced developers from a software outsourcing company.

Another benefit of outsourcing is that businesses don’t have to hire their services full time, but for the project’s duration.

Outsourcing services are in high demand today. Organisations globally are incorporating the services of other expert agencies into their workforce to aid the company’s development, even in areas that aren’t tech-related.

The good news is companies don’t have to be located in the same country to make things happen. Covid-19 proved that a physical co-location isn’t the only way to operate a business successfully. In the past, partnering with offshore technology was portrayed as complex. All these ideologies and claims were disproved when companies had to revert to working remotely.

2. Reduces cost on software development

Maintaining an in-house IT development team can be very expensive. Besides the fact that companies have to pay salaries, they also have to bear the cost/expense of compensation packages, holidays, etc. According to some studies, the cost of hiring and maintaining an in-house developer for start-ups can be twice the base salary of those in the industry. This isn’t reasonable, considering that the cost for outsourcing can be lesser. What companies can do in this case is lessen the cost burden is to outsource to another company; it is wiser to allow an outsourcing agency to pay for whatever IT packages are applied.

According to a survey by Deloitte, a is a multinational professional services network, about seven to ten companies resort to outsourcing their IT operations for its cost advantage.

Businesses can hire a lot more people at a lesser cost if certain technical tasks are outsourced. Because the contract is usually temporary, the benefits, holidays, and anything tax-related will be sorted by the hired outsourcing agency. In the end, it is a win-win situation for both parties.

To also optimise expenses, outsourcing agencies can help companies recruit new talents and conduct interviews.
The economic difference between countries, especially those that provide cheaper labour, is that they leverage outsourcing companies to reduce overhead costs. This implies that the location of an outsourcing agency can reduce the cost of IT operations again and again. A typical case is hiring a developer in Eastern Europe, which can be four times cheaper than hiring one in the United States. Note that the difference in fees charged by both countries does not affect the competency or delivery of the outsourcing services offered.

Another point to note is that while thinking of saving costs, the expenses aren’t only limited to the wages paid to these experts. It also includes the cost of technical tools, training, workspaces, and software licenses. The outsourced agency takes care of these, thereby saving the client-company some good money.

When companies outsource their IT projects, they do not only entrust tasks and transformation, but risks too. Frankly, it is an effective method for mitigating the potential risks that accompany product development.

Market research, if done properly, can aid the prediction of threats. However, certain risks may be incurred in the process of implementation. This is particularly common among start-ups and small businesses that lack a firm foundation and effective strategies. Outsourcing to an expert team will enable the effective management of the process.

3. Provides Flexibility

Relying on the expertise of an in-house IT team where you may need to hire extra hands to realise your goal can be draining. Hence, outsourcing your IT needs to a company like Hidden Brains will provide you with flexibility. Whatever the details of your request, ranging from integrating enterprise software or transforming the entire internal process of your company.

There is no need to panic about recruitment and resources when outsourcing your IT operations to an IT development company like Hidden Brains. We will not only ensure the required resources for your various projects but also see to building and expanding the team needed to implement and manage the project.

4. Allows for a better focus on core business

For many individuals or businesses, expertise is a core business function. However, as business begins to expand, other functions such as accounting, marketing, Human resources, and operations will need attention. The shift of focus may ultimately affect the quality of time given to core business functions, which may ultimately distract the core passion and drive. Another major issue that may pose a challenge is the shortage of skills to handle IT-related tasks.

By outsourcing business functions, you can trust a bulk of the workload is reduced, thus allowing you to focus on core business functions which will inherently improve the entire business.

Hiring the services of an IT development company like Hidden Brains will help you better manage and focus your time, money, and resources on the areas of business functions in which you are adept at producing results. At the same time, you can assign a team of expert IT developers to handle the IT functions of the business.

5. Saves time

IT development projects can be time-consuming, so hiring a team of experts to help implement processes will help you save time and mitigate the risks of not meeting deadlines due to a lack of expertise and experience.

Most times, hiring a recruiter to take up the role of finding the right talent may be the next solution, as searching for new talents to fill new roles in an organisation can be time-consuming. The hiring process can be overwhelming because it may entail weeks of screening and interviewing, which may not eventually produce the desired candidate.

In addition, today’s job market has an influx of businesses seeking the services of IT experts. This has caused IT jobs to be in high demand, thereby making them competitive. As a result, companies now strive to ensure their compensation packages are impressive to attract and retain the right candidates. When you outsource this task, experienced professionals will help you realise your project goal.

Conclusion

Entrusting critical IT projects to third-party professionals has proven to be more than profitable. Every organisation must reconstruct its processes to gain from the wealth of experience and expertise that outsourcing services offer.
If outsourcing is properly delegated, partnering with a firm with the appropriate collaboration model will guarantee a seamless outsourcing process.

Notwithstanding, despite its many benefits, outsourcing shouldn’t be seen as a means of transferring project tasks to a third party, but as a form of collaboration to augment operations.

Fortunately, the internet has different effective tools to facilitate the search process for the ideal team to entrust your projects. However, to save you the stress of searching endlessly for one and trying to figure out what works best for your company, Hidden Brains is here to help you throughout your IT development journey!