Opting to choose an IT outsourcing services company has numerous benefits. However, outsourcing your IT department has some cons.
Global spending on outsourcing hit a record-breaking £577 billion in 2023, with 92% of G2000 companies outsourcing IT services.
Meanwhile, IT services make up 72% of outsourcing contract values, while 72% of financial and accounting services outsource app development to remote IT departments.
A reason exists why companies worldwide are turning to outsourcing IT services companies.
Weigh the pros and cons of outsourcing your IT department to determine whether you need an in-house team or outsourcing contract to manage critical business functions.
Let’s introduce you to our outsourcing services before showing you the general pros and cons.
An Experienced Partner for a Competitive Edge
Outsourcing IT services is excellent when you partner with an experienced team. We have over 30 years of experience, and you can read more about us. We’d love you to meet the team.
Our clients range from Accourt Payment Specialists to The University of Edinburgh and NHS Scotland.
Why Choose an Outsourcing Partner at Pulsion?
We’ve also completed multiple case studies and have digital strategy consultants ready to guide you through each step of your outsourcing needs.
Additionally, some services we offer at Pulsion Technology include:
We are also an AWS partner and a Microsoft Azure partner.
Moreover, we designed Requiment, with one of its benefits being requirements engineering automation.
We’re an outsourcing provider with experience, automation tools, and specialist software engineers. Contact us today to learn more about our outsourcing services, experts, and dedicated developers.
Also, read our article about outsourcing vs. in-house software development.
Advantages of Outsourcing IT Services
What are the benefits of outsourcing IT services? There are many advantages of outsourcing your IT services, functions, and support.
Outsourcing your business’s IT functions to a remote team with the core competencies necessary can help you succeed. You should consider it if your company can gain access to any of the below benefits.
Gain Experienced Managers in Critical Business Operations
Finding the ideal project manager for your IT department could be a nightmare, especially if you’re based in a small town. However, outsourcing managerial IT skills keeps business operations afloat.
Critical functions and direction for the IT team at your organisation can lapse when you don’t have the right manager in place. IT project managers are another fantastic outsourcing addition to your team.
Scalable Outsourced Teams That Cut Costs
Scale IT staff faster by outsourcing work to a remote team. Searching for staff is time-consuming, and the relentless interviews reduce the time you spend making money.
Finding IT employees remotely allows businesses to scale faster, particularly when you can request specific skills from a greater selection of candidates. Your IT department can grow at your pace.
Cost Reduction and Lower Labor Costs
Did you know that 300,000 jobs are outsourced annually? The cost-effective benefits of outsourcing IT functions include the ability to reduce costs for essential software development and lower labor costs.
You aren’t responsible for remote IT staff the same way as in-house employees. Having in-house IT employees requires bonuses, stricter labour practices, and fixed salaries, even when they don’t work.
Improved Strategic Initiatives With More Specialised Skills
Businesses may utilise improved strategic initiatives to develop optimal software. Outsourcing software development services to a skilled team could open new doors for your organisation.
An outsourcing company like ours gives you immediate access to a diverse team of custom software developers to tackle strategic and innovative ideas for your company’s future.
Superior Remote Team Support by Skilled Professionals
Remote outsourcing IT support services teams are the new era that helps you benefit from a wider resource pool with skilled individuals who might offer the support an in-house team won’t at different hours.
Operate in different time zones to save valuable time with remote IT staff to ensure your software, tools, and critical business functions remain live while in-house employees are at home or on holiday.
Outsource for Flexible Teams in a Larger Talent Pool
A bigger talent pool awaits your IT department when outsourcing your services. In-house teams provide limited access to specialised skills to resolve technical issues.
On the other hand, outsourced services let you hire ReactJS developers and other dedicated developers. Not every in-house developer has every skill you may need to evolve your company.
Improved Focus on Core Business Functions and Business Goals
An IT department must focus on every project with your business goals in mind. Our team will create a successful requirements management plan to ensure your business objectives are our priority.
We also follow project management and software development best practices to focus on your core business functions for improved efficiency across all the necessary sectors.
Manage IT Risks and Data Security Better With Reliable Companies
Reliable data storage and protection are the keys to keeping your organisation’s data safe. Your organisation may store user, payment, employee, or tax information.
A breach would be detrimental to your organisation. Fortunately, reliable outsourcing organisations will have a team of experts with a broader and possibly updated knowledge of the latest security features.
Disadvantages of Outsourcing IT Services
The cons of outsourcing company IT services exist. Know the cons of outsourcing to remote teams before considering a partnership in software development, project management, or any IT services. Keep an in-house team if the disadvantages outweigh the many advantages.
A Lack of Control Over Outsourced Developers
The risk of losing control over IT projects is higher among remote developers and teams. You can provide guidance and communicate with the team, but you lose some control when you outsource.
Hiring contract or freelance IT employees increases the risk of losing control. Instead, stick to well-known and trusted companies to prioritise collaboration and communication.
Costly Outsourcing Companies and Third Party Providers
Transparency is the key to partnering with the right outsourcing provider. Any contract should be transparent from the start, and be careful of third-party providers that increase the costs.
The terms and conditions in the contract for IT services from remote organisations reveal whether they’re transparent or not. Instead, contact us to learn more about our transparent nature.
A Lack of Effective Communication Styles
Communication doesn’t only relate to having some control over your IT projects. A lack of effective communication protocols with your IT services company could impact deadlines and results.
Always connect with a company like ours to ensure communication protocols are followed. It also helps to be on the same timeline for business hours communication.
Potentially Slow Response to Technical Difficulties
A technical issue could arise at any point, and having a remote-only IT team results in slow response times to the technical problem. Meanwhile, hardware failures could also have longer downtimes.
A remote It specialist in the UK can’t rush over to your physical infrastructure to resolve hardware issues. However, an in-house employee could offer better infrastructure management.
Intellectual Property Challenges in Technology Needs
You could lose the intellectual property rights to software when partnering with poor remote IT departments. Please read the terms and conditions of your outsourcing contract well before signing it.
We release the intellectual property rights once we complete your development project. We also grant you worldwide source code licenses to use every component of your software.
Potential Risks Related to Security and Cyber Threats
Unusual network activity, security risks, and cyber threats are potential challenges when outsourcing your IT business needs. Businesses trust us to value their security and network activity.
Not every outsourcing contract will value your data security, safety standards, and user protection needs. You need a company that follows the best data protection and software development standards.
Negative Impact on In-House Department Culture
Human resources may have their hands full in your company once you outsource IT services. An in-house department could feel threatened, leading to poor team morale and work culture.
You want your in-house staff to be productive, and have a good work culture, proven to benefit employees, employers, and the bottom line. Keep a close eye on human resources with outsourced staff.
Outsourcing Companies Might Fail to Meet Quality Expectations
The cons of outsourcing companies include the risk of contracting a company that doesn’t prioritise your quality expectations as a business owner. Businesses have expectations we aim to meet.
However, some remote IT companies won’t value your business needs, objectives, rules, or expectations. Some business owners find it challenging to express expectations to a remote team.
Tips for Outsourcing Your IT Department
An internal team using internal resources suits some businesses just fine. However, outsourcing your IT department has numerous benefits. Here are three tips to ensure you hire the right company.
Tip 1: Conduct a Thorough Analysis of a Potential Outsourcing Partner
Our clients and case studies shine a light on some of our work. We’re open to any questions you have when you contact us. However, we recommend you properly research any company before outsourcing.
Tip 2: Clearly Define Your Core Business Expectations
It’s your organisation! Be clear and abundant with core business expectations. For example, ask business analysts every question to clarify misunderstandings and set well-defined expectations.
Tip 3: Choose an Outsourcing Contract Offering a Partnership
Our project approach includes the popular Agile methodology, meaning we treat you like a partner. You remain aware of progress at set times, and we gather your feedback. Partnership is what you want.
Summing Up the Pros and Cons of Outsourcing IT
An in-house team works for some company needs, but outsourcing has multiple benefits your business could experience with the right team and core competencies.
Businesses require a unique approach to their IT services. We provide the same standards your company expects when you outsource with us.
Let our external experts strategise around your unique company.
Speak to one of our digital strategy consultants today to hear about our cutting-edge offers and outsourcing services to fulfill your core business needs.
Outsourcing IT Services Frequently Asked Questions
What Are the Cost-Savings Benefits of Outsourcing an IT Department?
Cost savings is one of the primary reasons companies outsource IT teams. Your business can reduce costs by outsourcing IT services to remote teams that don’t have to sit in an office during particular hours. Instead, they work on the clock and charge per hour, unlike the in-house staff you pay monthly.
Will I Gain Access to a Wider Talent Pool By Outsourcing the IT Department?
Yes, you only have access to IT staff within your direct location when hiring new talent for your IT department. However, outsourcing your IT services to an organisation like ours allows you to access more talent. Our team of experts offers a variety of talent in the technology and engineering space.
Is In-House Software Development or Outsourced Teams Better?
Having a team of IT staff in-house may provide faster responses to hardware issues, infrastructure management, and matching cultural aspects. However, having a remote IT team means you have staff with broader potential knowledge and expertise and possible availability outside your business hours.
Does a Secondary Party Care About Customer Experience?
Read more about us to discover how much passion we have for our clients. Our bespoke software development services and Agile methodology techniques mean we partner with you. Your success is ours. However, read contracts carefully, and ensure you have a collaborative team to outsource services.
Who Owns the Intellectual Property When Outsourcing an IT Department?
Have a non-disclosure agreement (NDA) signed in the UK to protect your intellectual property rights to the software or services you need to protect. Fortunately, we offer NDAs, and the rights to your intellectual property regarding software belong to you once the project is completed.
When Should You Outsource IT Services?
Outsource your IT department if you’re in a location with fewer than necessary staff to fulfill your needs. Also, we recommend outsourcing IT functions if you need specialised skills your current staff doesn’t possess. For example, hire our ReactJS developers as one example of harder-to-find skills.
When Is Outsourcing IT Services Not Good for Your Business?
A business without a cloud migration strategy for the near future may not want remote staff that can’t attend to technical problems or manage infrastructure from another region. Alternatively, migrate to cloud computing to better utilise the benefits of a remote IT team.
